According to Cointelegraph, the cryptocurrency industry in the United States continues to grapple with banking challenges despite recent positive legislative developments. The collapse of crypto-friendly banks in early 2023 led to allegations of a government initiative, dubbed Operation Chokepoint 2.0, aimed at pressuring banks to sever ties with cryptocurrency firms. Critics, including venture capitalist Nic Carter, have voiced concerns over these efforts.
Despite several favorable decisions from U.S. President Donald Trump, such as the March 7 directive to use Bitcoin seized in government criminal cases to establish a national reserve, the industry still faces significant banking hurdles. Caitlin Long, founder and CEO of Custodia Bank, emphasized that it is too early to declare an end to debanking issues. During Cointelegraph’s Chainreaction daily X show on March 21, Long highlighted that two crypto-friendly banks are currently under examination by the Federal Reserve, with a substantial number of examiners involved.
Long pointed out that the Federal Reserve remains an outlier, still under Democratic control, and noted that President Trump will not have the opportunity to appoint a new Fed governor until January. This situation could lead to a significant conflict if the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) reverse their anti-crypto guidance while the Fed does not. Custodia Bank, Long's institution, has been a target of U.S. debanking efforts, resulting in substantial financial and operational setbacks.
The issue of debanking is not confined to the United States. Anastasija Plotnikova, co-founder and CEO of blockchain regulatory firm Fideum, stated that cryptocurrency debanking remains a major challenge for European firms as well. Plotnikova shared her personal experiences of having accounts closed multiple times over the years, although 2024 was an exception. She emphasized that these operational challenges persist for both users and crypto firms in the EU.
The comments from industry leaders come shortly after the OCC relaxed its stance on bank engagements with crypto, following President Trump's commitment to ending the prolonged crackdown on crypto firms' access to banking services. During the White House Crypto Summit, Trump announced the termination of Operation Chokepoint 2.0, a move that was welcomed by the industry. Cointelegraph reported that at least 30 tech and crypto founders were "secretly debanked" in the U.S. during this operation, highlighting the ongoing challenges faced by the sector.
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