U.S. Crypto Sector Breaks Free: Coinbase Chief Confirms End of Operation Choke Point 2.0

The crypto industry has scored a major regulatory win. Coinbase Chief Legal Officer Paul Grewal revealed that Operation Choke Point 2.0—the banking restriction policy that had strangled U.S. crypto firms’ access to financial services—is officially being dismantled.

What Changed and Why

For years, Operation Choke Point 2.0 created a suffocating environment for crypto companies, effectively cutting them off from traditional banking infrastructure. The policy reversal comes as part of a broader shift in Washington’s approach to digital assets, driven by the current administration’s deregulation push.

Grewal’s announcement signals that the doors are opening again. This isn’t just symbolic—it directly removes a major operational barrier that had forced many companies to navigate workarounds just to function.

Legislative Tailwinds Accelerating Adoption

The timing couldn’t be better. The passage of the GENIUS Act and CLARIFY Act has further solidified this regulatory thaw. These legislative moves provide clearer frameworks for how crypto companies should operate within the U.S. financial system, replacing years of ambiguity and hostility.

Together, these developments are reshaping the landscape for institutional participation. Major players are taking notice—Vanguard, which manages $11 trillion in assets, has increased its engagement with digital assets, and trading volumes in leading altcoins are climbing.

What This Means for the Market

The removal of Operation Choke Point 2.0 represents more than just policy cleanup. It’s a turning point that legitimizes crypto’s place in mainstream finance. With banking access restored and clearer regulatory pathways established, expect accelerated institutional adoption and expanded retail participation in the coming months.

The playing field just shifted decisively in crypto’s favor.