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Coinbase Legal Chief Declares End of Operation Choke Point 2.0 as Crypto Industry Gains New Momentum

Coinbase Legal Chief Declares End of Operation Choke Point 2.0 as Crypto Industry Gains New Momentum

  • Operation Choke Point 2.0 ends, boosting U.S. crypto market growth.
  • GENIUS Act and CLARIFY Act enhance crypto regulation and adoption.
  • Vanguard’s $11 trillion assets signal institutional confidence in digital assets.

According to Coinbase Chief Legal Officer Paul Grewal, the long-criticized “Operation Choke Point 2.0” has formally come to an end, signaling a major shift for digital asset firms seeking access to U.S. banking services. Grewal linked this policy reversal to President Donald Trump’s aggressive deregulation agenda, which reopened financial pathways that had been restricted for years.


Grewal noted that digital assets were the central target of the operation, yet any lawful American industry could have faced similar suppression through the strategic use of banking limitations. He added that exposing these tactics ensures they will not be repeated, strengthening confidence across the broader financial sector.


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Crypto Expansion Accelerates With Institutional Backing

Crypto’s momentum has increased since the end of the banking blockade, and institutional adoption has continued to rise. Besides this progress, industry observers have pointed to the entrance of major firms like Vanguard, which manages $11 trillion, as evidence of deepening mainstream confidence. Consequently, American-origin crypto tokens hold a combined market cap of $397.5 billion, led by XRP, USDC, Solana, and Dogecoin.


This surge has coincided with faster approvals for spot crypto exchange-traded funds in the United States. These ETFs have brought new investment flows from traditional finance, expanding liquidity, and improving market stability. Moreover, increased trading activity for leading altcoins has shown that investors are responding quickly to the improved regulatory climate.


Legalization Strengthens Under New Federal Frameworks

The legalization pillar of the U.S. crypto landscape grew stronger in July after President Donald Trump signed two major federal measures, the GENIUS Act and the CLARIFY Act. Both laws were designed to support digital financial technology by defining clearer regulatory boundaries and expanding protections for crypto-related innovation.


Furthermore, these measures provided a unified framework that helped institutions participate without uncertainty, enhancing long-term industry growth.


Additionally, these laws streamlined compliance processes, which encouraged broader corporate participation and accelerated product development across the Web3 sector. Major global tech firms have since intensified their efforts to build tools that can onboard millions of new users into blockchain-based services.


The end of Operation Choke Point 2.0, combined with new federal support through the GENIUS Act and CLARIFY Act, has created a stronger environment for crypto expansion in the United States. This shift has encouraged institutional capital to enter the market and increased confidence across the digital asset ecosystem.


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