A new executive order by President Trump directs regulators to tighten financial access for undocumented immigrants, citing national security. Critics warn this could push millions toward cryptocurrency and stablecoins for remittances, mirroring the "debanking" tactics of "Operation Chokepoint 2.0" that the Trump family's own crypto venture, World Liberty Financial, cited as its origin.
Trump immigration executive order
- ▪On May 19, President Donald Trump issued an executive order to "restore integrity to America’s financial system."
- ▪The order directs federal regulators, including the Treasury Department, to tighten fraud screening and risk mitigation for undocumented immigrants
- ▪The White House stated the policy addresses "gaps in customer identification practices" used by criminal networks to move illicit funds
Operation Chokepoint debanking tactics
- ▪Donald Trump Jr. stated at a conference, "We got into crypto because—out of necessity—we were debanked."
- ▪Eric Trump and Donald Trump Jr. founded their crypto venture, World Liberty Financial, in 2024, citing their own experience of being "debanked."
- ▪The policy's effects are compared to "Operation Chokepoint 2.0," an alleged Biden-era plot where regulators pressured banks to cut ties with crypto firms
Cryptocurrency adoption by immigrants
- ▪Critics and policy experts warn the order could force millions of people out of the traditional banking system and toward crypto alternatives
- ▪Nicholas Anthony of the Cato Institute predicts some undocumented immigrants will turn to crypto, while others may use organized crime groups for remittances
Financial surveillance civil liberties
- ▪Nic Carter of Castle Island Ventures warned that expanding government oversight creates a dangerous blueprint for future administrations
- ▪Nicholas Anthony of the Cato Institute described the executive order as "deputizing banks as immigration enforcement officers."
Stablecoin remittance payment systems
- ▪The order directs the Treasury to craft guidance on the use of "peer-to-peer payments platforms to facilitate ‘off-the-books’ wage payments."
- ▪Tom Feltner of Americans for Financial Reform noted that stablecoins and Bitcoin ATMs lack consumer safeguards required for remittance providers under federal law
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