Crypto Industry May Continue to Struggle with Debanking Issues in the U.S.

Despite the recent wave of positive legislation, the crypto industry may continue to face debanking challenges in the U.S., according to crypto regulators and industry leaders.

The collapse of crypto-friendly banks in early 2023 triggered the first allegations of Operation Chokepoint 2.0. Critics, including venture capitalist Nic Carter, described it as a government effort to pressure banks into cutting ties with cryptocurrency firms. Despite numerous positive decisions from U.S. President Donald Trump, including his March 7 order to use Bitcoin seized in government criminal cases to create a national reserve, the crypto industry may still encounter banking issues.

Caitlin Long, CEO of Custodia Bank, stated, “It’s premature to say that debanking is over.” She mentioned that two crypto-friendly banks are currently under review by the Fed, with a “literal army” of examiners being sent to these banks. Long also explained that Trump won’t have the ability to appoint a new Fed chairman until January 2026, potentially leading to a major debate if the OCC and FDIC reverse their anti-crypto guidance but the Fed does not.

Custodia Bank has been repeatedly targeted by debanking efforts in the U.S., causing significant financial losses for the firm.

Rising Industry Backlash and Global Challenges Against Crypto Debanking

Industry outrage over crypto debanking reached a peak when a June 2024 lawsuit led by Coinbase resulted in the release of letters showing U.S. banking regulators asked certain financial institutions to pause their crypto banking activities.

Blockchain regulatory consultant Anastasija Plotnikova highlighted that European crypto firms are also facing significant debanking challenges. She said, “We’re in 2025, and debanking is still one of the main operational issues for both small and large crypto firms,” adding, “Crypto debanking is also an issue here in the EU. My accounts were closed in 2017, 2018, 2019, 2021, and 2022, but 2024 has been a good year. Operationally, these issues persist for both users and crypto firms.”

These comments came shortly after the U.S. Office of the Comptroller of the Currency (OCC) eased its stance on how banks can engage with crypto, and U.S. President Trump’s remarks that he would end the prolonged crackdown restricting crypto firms’ access to banking services. Trump made the announcement during the White House Crypto Summit, stating, “I am ending Operation Chokepoint 2.0.”

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