House GOP Plans Escalate: Republicans Warn of “Operation Choke Point 3.0” as Crypto Battle Intensifies in Washington
House Republicans have released a sweeping new report accusing the Biden administration of orchestrating a deliberate campaign to isolate digital asset firms from the U.S. financial system — a move they say mirrors past government pressure tactics once used against disfavored industries.
In a 53-page document titled “Operation Choke Point 2.0: Biden’s Debanking of Digital Assets,” members of the House Financial Services Committee argue that regulatory agencies spent recent years constraining access to banking services for crypto companies and individuals involved with digital assets.
According to the report, the administration “sought to make it nearly impossible to engage in digital asset-related activities,” prompting lawmakers to act before a third iteration of “Operation Choke Point” can take hold.
Debanking Fears Resurface
Concerns about covert restrictions have grown recently following reports that major banks shut down personal accounts of crypto industry figures — most notably Strike CEO Jack Mallers, who said JPMorgan Chase closed his accounts without explanation.
The GOP report ties these incidents to the broader narrative that regulators under Biden discouraged banks from servicing the crypto economy.
Regulatory Shift Under Trump Administration
Republicans highlighted that, since the beginning of the Trump administration, the Federal Reserve, FDIC, and OCC have pledged to abandon the use of “reputational risk” in reviewing banks' customer relationships — a framework critics argue enabled political targeting of lawful industries.
The SEC has also taken a dramatically different posture under new leadership. Former Chair Gary Gensler’s stance that most crypto tokens are securities — which fueled an aggressive enforcement-heavy approach — has been replaced by a more market-structure-focused strategy under current Chair Paul Atkins.
Congress Accelerates Crypto Legislation Push
This new GOP report marks the second crypto-focused congressional release in recent days, underscoring how lawmakers are ramping up efforts to finalize sweeping regulatory reforms.
Republicans are urging regulators to prioritize rulemaking while Congress advances legislation like the Digital Asset Market Clarity Act, a bill designed to finally define the oversight roles of the SEC and the Commodity Futures Trading Commission.
The House passed its version months ago, and the Senate Banking Committee plans to move forward with a vote before year-end. However, progress has been slowed by partisan disagreements, including accusations from Senate Banking Chair Tim Scott that Democrats are delaying the process.
Democrats Raise Alarm Over Trump’s Crypto Entanglements
Meanwhile, Democrats have released their own report claiming that the Trump administration is deeply entangled in for-profit crypto ventures — arguing that these ties pose serious conflicts of interest as Congress debates the future structure of the industry.
They point to the president’s estimated $620 million in crypto-related profits, significant family stakes in mining and DeFi projects, and the launch of memecoins associated with the Trump family shortly before taking office.
These concerns have become a sticking point in negotiations, with Democrats warning that legislation could be shaped by private financial incentives rather than public interest.