The cryptocurrency sector may still be grappling with issues related to debanking in the United States, even with a recent surge of favorable legislation, as noted by regulatory experts and industry officials.
The downfall of crypto-friendly banks in early 2023 ignited the initial claims of Operation Chokepoint 2.0. Critics, including prominent venture capitalist Nic Carter, characterized it as a government strategy aimed at pressuring banks to sever connections with cryptocurrency companies.
Despite various pro-cryptocurrency initiatives from former President Donald Trump, such as the March 7 directive to leverage Bitcoin (BTC) seized from criminal cases for a national reserve, the industry may continue to encounter banking challenges.
Caitlin Long, founder and CEO of Custodia Bank, mentioned, “It’s too soon to declare that debanking is a thing of the past.” During a discussion on Cointelegraph’s daily show on March 21, she stated:
“There are currently two crypto-friendly banks under scrutiny by the Fed, with a substantial number of examiners dispatched to these institutions—literally an army just engulfing the banks.”
Long further elaborated on the Fed’s unique position, noting, “The Fed remains an outlier and is still influenced by Democrats,” adding that
“Trump won’t be able to appoint a new Fed governor until January. Therefore, you can see the precursors to a potentially significant conflict. If the OCC and FDIC reverse their anti-crypto directives but the Fed does not, where does that leave us?”
Long’s Custodia Bank faced repeated targeting through U.S. debanking efforts, which cost the firm months of operations and “a couple of million dollars,” as she explained.
Industry indignation over alleged debanking reached a peak following a June 2024 lawsuit led by Coinbase, which revealed communications indicating that U.S. banking regulators requested certain financial institutions to “pause” their crypto banking operations.
The Challenge of Crypto Debanking in the EU
According to Anastasija Plotnikova, co-founder and CEO of a blockchain regulatory firm, crypto debanking remains one of the most significant challenges for firms within the European market.
“We’re already in 2025, and debanking continues to be a primary operational difficulty for both small and large cryptocurrency enterprises,” Plotnikova remarked, adding:
“This issue is prevalent in the EU as well. My accounts were shut down in 2017, 2018, 2019, 2021, and 2022, but 2024 was a better year. These operational challenges affect both users and crypto businesses alike.”
Her comments followed a momentous announcement from the U.S. Office of the Comptroller of the Currency (OCC), which relaxed its approach to banks engaging with crypto shortly after Trump declared his intention to end the long-standing crackdown on cryptocurrency firms’ banking access.
During the White House Crypto Summit, Trump informed industry stakeholders that he was “putting an end to Operation Chokepoint 2.0.”
Reports indicated that at least 30 tech and cryptocurrency founders were “secretly debanked” in the U.S. during Operation Chokepoint 2.0.