When the Trump family faced banking pressure, they turned to crypto. Now, a new executive order may force undocumented immigrants into the same corner.
On May 19, President Trump signed an executive order to "restore integrity to America’s financial system." It tasks regulators like the Treasury Department with tightening fraud screening and limiting credit for undocumented immigrants.
This move mirrors the alleged "Operation Chokepoint 2.0" under the Biden administration, which crypto founders say drove them to digital assets. Eric Trump and Donald Trump Jr. have said banking challenges were the reason they launched World Liberty Financial.
Critics warn that freezing millions out of traditional banking could backfire. Nicholas Anthony of the Cato Institute called it "deputizing banks as immigration enforcement officers." He said some will turn to crypto as a lifeline, while others may use organized crime networks for remittances.
Stablecoins and Bitcoin ATMs are key tools for those pushed out of the system. But Tom Feltner of Americans for Financial Reform said these lack consumer protections, calling them a "shadow banking system."
The order comes as banking regulators have just eliminated "reputation risk" as a supervisory tool. Nic Carter of Castle Island Ventures warned that this sets a dangerous precedent: "Trump is going after illegal immigrants today, but what happens in a Democratic administration?"