The cryptocurrency industry is grappling with ongoing debanking challenges in the United States, despite recent positive developments in legislation. As highlighted by key industry figures, these issues are likely to persist until at least January 2026, when potential regulatory changes could occur following new appointments.
The aftermath of the collapse of several crypto-friendly banks in early 2023 ignited allegations of Operation Chokepoint 2.0. Critics, including venture capitalist Nic Carter, have labeled it a governmental effort to urge banks to sever ties with cryptocurrency firms, leading to significant operational disruptions.
Caitlin Long, founder and CEO of Custodia Bank, voiced concerns during a recent discussion, stating, “It’s premature to say that debanking is over.” She pointed out that two crypto-friendly banks are currently under scrutiny by the Federal Reserve (Fed) and are facing intense examination from federal entities. Long elaborated, “An army of examiners was sent into these banks, including the examiners from Washington, a literal army just smothering the banks.”
Long emphasized that the Fed remains the primary obstacle in the path of crypto-friendly banking, and indicated that significant tension might arise if the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) override their anti-crypto guidance while the Fed does not. She noted, “Trump won’t have the ability to appoint a new Fed governor until January. So therefore you can see the breadcrumbs leading up to a potentially big fight.”
This ongoing turmoil has resulted in considerable losses for firms like Custodia Bank, which Long stated costs them months of work and substantial financial resources. The uproar regarding these alleged debanking efforts has only escalated, particularly following a lawsuit led by Coinbase which revealed that certain US banking regulators had instructed financial institutions to pause their crypto banking activities.
Meanwhile, across the Atlantic, similar problems are affecting European cryptocurrency firms. Anastasija Plotnikova, co-founder and CEO of blockchain regulatory firm Fideum, noted that debanking is one of the primary operational issues facing both small and large crypto firms in the EU. She recounted her own experiences with account closures, emphasizing that these issues are not isolated to one region but are a global concern.
Despite reassurances from leaders, including a recent address from Trump where he vowed to put an end to these restrictions, the reality remains that the landscape for cryptocurrency banking is fraught with uncertainty. With ongoing regulatory scrutiny and divisions within governmental agencies, the path forward for the cryptocurrency sector looks tumultuous, potentially until the new Federal Reserve leadership takes shape in 2026.
