In a significant development for the crypto industry, Coinbase’s Chief Legal Officer, Paul Grewal, formally declared the end of “Operation Choke Point 2.0” on Tuesday. Grewal credited the Trump administration’s deregulatory policies for reopening the U.S. banking system to digital asset firms. This announcement marks a pivotal moment for the industry, suggesting that the banking blockade era has been replaced with a new era of institutional integration for digital assets.
Grewal emphasized that while Operation Choke Point 2.0 specifically targeted digital assets, it also highlighted the broader threat. He expressed appreciation for the work done to document these abuses to ensure such actions do not recur. This shift in regulatory policy signals a potential new path forward for crypto businesses in the U.S.
Institutional Growth in the Crypto Sector
The end of Operation Choke Point 2.0 has given a boost to the crypto industry, with major institutional players now more actively involved. Grewal pointed to the significant rise in adoption, particularly from large financial institutions like Vanguard, which oversees $11 trillion in assets. The growth of American-made crypto tokens has been remarkable, with notable coins such as XRP, USDC, Solana, and Dogecoin leading the charge.
The legalization of the crypto industry in the U.S. has played a key role in facilitating the flow of institutional capital into digital assets. Additionally, the accelerated listing process for spot crypto Exchange-Traded Funds (ETFs) has provided another channel for integrating traditional finance with the crypto market. As a result, cryptocurrencies such as Solana and XRP have experienced significant gains.
Anticipation of Future Regulations
The crypto sector is now closely watching for the implementation of the CLARITY Act, a piece of legislation expected to bring further clarity to the regulatory landscape. Grewal and Coinbase are also actively pushing for the election of pro-crypto leaders, especially ahead of the 2026 midterm elections. This ongoing push for regulatory clarity aligns with broader efforts from industry figures.