{"id":22616,"date":"2026-02-24T07:07:26","date_gmt":"2026-02-24T07:07:26","guid":{"rendered":"https:\/\/bitunikey.com\/news\/u-s-fed-seeks-public-comment-on-ending-operation-chokepoint-2-0\/"},"modified":"2026-02-24T07:07:47","modified_gmt":"2026-02-24T07:07:47","slug":"u-s-fed-seeks-public-comment-on-ending-operation-chokepoint-2-0","status":"publish","type":"post","link":"https:\/\/bitunikey.com\/news\/u-s-fed-seeks-public-comment-on-ending-operation-chokepoint-2-0\/","title":{"rendered":"U.S. Fed seeks public comment on ending \u201cOperation Chokepoint 2.0\u201d"},"content":{"rendered":"<p><\/p>\n<div class=\"post-detail__content blocks\">\n<p class=\"is-style-lead\">The Federal Reserve Board of Governors on February 23 proposed a rule to formally remove \u201creputation risk\u201d as a factor in its bank supervision standards, a shift aimed at ending a controversial practice critics call Operation Chokepoint 2.0.<\/p>\n<div id=\"cn-block-summary-block_0e174999af3ecfaf0cec035482afa92d\" class=\"cn-block-summary\">\n<div class=\"cn-block-summary__nav tabs\">\n        <span class=\"tabs__item is-selected\">Summary<\/span>\n    <\/div>\n<div class=\"cn-block-summary__content\">\n<ul class=\"wp-block-list\">\n<li>The Federal Reserve Board of Governors has proposed removing \u201creputation risk\u201d from bank supervision standards, a move aimed at ending what critics call Operation Chokepoint 2.0.<\/li>\n<li>The proposal would require examiners to focus on concrete financial risks such as credit, liquidity, and compliance, rather than subjective concerns about a bank\u2019s public image.<\/li>\n<li>Supporters, including Senator Cynthia Lummis, say the change could curb debanking pressures that have affected lawful sectors, particularly cryptocurrency firms.<\/li>\n<\/ul><\/div>\n<\/div>\n<p><!-- .cn-block-summary --><\/p>\n<h2 class=\"wp-block-heading\">Fed moves to end \u2018Operation Chokepoint 2.0\u2019<\/h2>\n<p>Under the <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/www.federalreserve.gov\/newsevents\/pressreleases\/bcreg20260223a.htm\" target=\"_blank\" rel=\"nofollow\">proposal<\/a>, the Fed would clarify that examiners must focus on concrete financial risks such as credit, liquidity, and compliance issues rather than on subjective concerns about a bank\u2019s public image. The rule is now open for a 60-day public comment period after publication in the Federal Register.<\/p>\n<p>Vice Chair for Supervision Michelle W. Bowman said the Fed has heard \u201ctroubling cases of debanking where supervisors use concerns about reputation risk to pressure financial institutions to debank customers because of their political views, religious beliefs, or involvement in lawful but disfavored businesses.\u201d <\/p>\n<p>She added that discrimination on those bases \u201cdoes not have a role in the Federal Reserve\u2019s supervisory framework.\u201d<\/p>\n<p>    <!-- .cn-block-related-link --><\/p>\n<p>Operation Chokepoint 2.0 refers to a period in recent years when some lawmakers and industry advocates alleged that federal regulators and bank supervisors pressured banks to cut off services to lawful firms, especially in the cryptocurrency sector, by invoking vague reputational concerns. They say this made it harder for digital asset companies to open or maintain bank accounts.<\/p>\n<p>The term echoes the original 2013 Operation Choke Point, a Department of Justice initiative that targeted certain \u201chigh-risk\u201d legal businesses such as payday lenders and firearm dealers by encouraging banks to limit their services.<\/p>\n<p>The proposal resonates with political efforts dating back to 2025, when the Trump administration issued an executive order aimed at ending the informal debanking pressures associated with Operation Chokepoint 2.0, which had discouraged banks from providing services to certain lawful sectors, including cryptocurrency firms.<\/p>\n<p>Wyoming Senator Cynthia Lummis welcomed the Fed\u2019s proposal on social media platform X, saying she hopes it will finally put Operation Chokepoint 2.0 to rest and help the United States become a global hub for digital assets.<\/p>\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\">\n<div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">It\u2019s not the Fed\u2019s role to play both judge and jury for banking digital asset companies. Glad to see this important step to permanently remove \u201creputation risk\u201d from Fed policy and put Operation Chokepoint 2.0 to rest so America can become the digital asset capital of the world. <a rel=\"nofollow\" target=\"_blank\" rel=\"nofollow\" href=\"https:\/\/t.co\/G6rUnXtCSw\">pic.twitter.com\/G6rUnXtCSw<\/a><\/p>\n<p>\u2014 Senator Cynthia Lummis (@SenLummis) <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/twitter.com\/SenLummis\/status\/2026060712305365065?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"nofollow\">February 23, 2026<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n<p>Supporters of the regulatory shift say it will make supervision more predictable and fairer for all lawful sectors, not just cryptocurrency firms.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p>\n<\/p><\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Federal Reserve Board of Governors on February 23 proposed a rule to formally remove \u201creputation risk\u201d as a factor in its bank supervision standards, a shift aimed at ending&hellip;<\/p>\n","protected":false},"author":1,"featured_media":3304,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-22616","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency"],"_links":{"self":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/22616","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/comments?post=22616"}],"version-history":[{"count":1,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/22616\/revisions"}],"predecessor-version":[{"id":22617,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/22616\/revisions\/22617"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media\/3304"}],"wp:attachment":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media?parent=22616"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/categories?post=22616"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/tags?post=22616"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}