Coinbase CLO: End of 'Operation Choke Point 2.0' Unlocks Institutional Capital for Crypto

Source: CoinEdition Original Title: Coinbase CLO: Vanguard’s Entry Proves Crypto Industry Is No Longer ‘Choked’ Original Link: https://coinedition.com/operation-choke-point-2-0-officially-over-says-coinbase-clo-paul-grewal/

Regulatory Thaw Marks Turning Point for Digital Assets

Coinbase Chief Legal Officer Paul Grewal formally declared the end of “Operation Choke Point 2.0” Tuesday, crediting the Trump administration’s aggressive deregulation strategy for reopening the U.S. banking system to digital asset firms. Grewal’s statement validates the industry’s view that the banking blockade era has been superseded by a new mandate for institutional integration.

“While digital assets were the target of Operation Choke Point 2.0, any legal American industry could be next if regulators continue to use banking services as a political weapon. But I appreciate their work to document these abuses so that they never happen again,” Grewal noted.

Crypto Industry Thrives After Regulatory Shift

According to Grewal, any legal American industry can be attacked through weaponizing the banking space. However, the crypto industry in the United States has thrived in the past two years, as observed by the adoption of crypto by the $11 trillion Vanguard.

According to the report highlighting the tactics used in Operation Choke Point 2.0 from the United States House Committee on Financial Services, President Trump has advocated for its end. President Trump signed an executive order in the early days of his second term administration, dubbed Strengthening American Leadership in Digital Financial Technology.

As such, crypto tokens and coins made in America have grown backed by institutional investors. According to crypto market data, American-made crypto tokens and coins had a market cap of about $397.5 billion led by XRP, USDC, Solana (SOL), and Dogecoin (DOGE).

Why Crypto Legalization Matters

The legalization of the crypto industry in the United States has played a crucial role in onboarding institutional money to the digital asset space. For instance, the accelerated listing process for spot crypto Exchange-Traded Funds (ETFs) in the United States has helped widen the pipeline for integrating traditional finance to the wider crypto market.

Already, several crypto altcoins – led by Solana and XRP – have recorded a significant amount of net cash inflow and traded volume in the first few weeks. Additionally, major tech companies around the world have been building Web3 products to onboard the next 500 million people globally to cutting-edge financial technology.

The GENIUS Act Effect & CLARITY Act Goals

The crypto industry has been anticipating the enactment of the CLARITY Act in a similar way to the GENIUS Act. The implementation of the GENIUS Act has helped increase the stablecoin market cap beyond $300 billion.

Consequently, Grewal and Coinbase have been pushing for the election of pro-crypto leaders, especially in preparation for the 2026 midterm elections. Meanwhile, industry leaders have urged the wider crypto community to take advantage of the regulatory clarity to focus on developing revolutionary products that onboard billions of global users.