Update March 22, 2025, 10:08 a.m. UTC: This article has been updated to include an embed of the Chainreaction episode.
The cryptocurrency industry may still be facing debanking-related issues in the United States, despite the recent wave of positive legislation, according to crypto regulatory experts and industry leaders.
The collapse of crypto-friendly banks in early 2023 sparked 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 crypto-positive decisions from US President Donald Trump, including the March 7 order to use Bitcoin (BTC) seized in government criminal cases to establish a national reserve, the industry may still be facing banking issues.
“It’s premature to say that debanking is over,” according to Caitlin Long, founder and CEO of Custodia Bank. Long said during Cointelegraph’s Chainreaction daily X show on March 21:
“There are two crypto-friendly banks under examination by the Fed right now and an army of examiners was sent into these banks, including the examiners from Washington, a literal army just smothering the banks.”
The Crypto Debanking Crisis: #CHAINREACTION https://t.co/nD4qkkzKnB
— Cointelegraph (@Cointelegraph) March 21, 2025
“The Fed is the outlier and the Fed is still controlled by democrats,” explained Long, adding:
“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. Because if the OCC and FDIC overturn their anti-crypto guidance but the Fed does not, where does that leave us?”
Long’s Custodia Bank was repeatedly targeted by the US debanking efforts, which cost the firm months of work and “a couple of million dollars,” she explained.
Industry outrage over alleged debanking reached a crescendo when a June 2024 lawsuit spearheaded by Coinbase resulted in the release of letters showing US banking regulators asked certain financial institutions to “pause” crypto banking activities.
Related: FDIC chair, ‘architect of Operation Chokepoint 2.0’ Martin Gruenberg to resign Jan. 19
Crypto debanking is the biggest operational problem in EU: blockchain regulations adviser
Cryptocurrency debanking is also among the biggest challenges for European cryptocurrency firms, according to Anastasija Plotnikova, co-founder and CEO of blockchain regulatory firm Fideum.
“We’re living in 2025 and debanking is still one of the main operational issues for both small and large crypto firms,” said Plotnikova, adding:
“Crypto debanking is also a problem here in the EU. I had my accounts closed in 2017, 2018, 2019, 2021, and 2022, but 2024 was a good year. Operationally these problems exist for both users and crypto firms operating.”
Related: Paolo Ardoino: Competitors and politicians intend to ‘kill Tether’
The comments come two weeks after the US Office of the Comptroller of the Currency (OCC) eased its stance on how banks can engage with crypto just hours after US President Donald Trump vowed to end the prolonged crackdown restricting crypto firms’ access to banking services.
Trump’s remarks were made during the White House Crypto Summit, where he told industry leaders he was “ending Operation Chokepoint 2.0.”
Source: Elon Musk
At least 30 tech and crypto founders were “secretly debanked” in the US during Operation Chokepoint 2.0, Cointelegraph reported in November 2024.
Magazine: SEC’s U-turn on crypto leaves key questions unanswered
