Source: Cointelegraph.com NewsUpdate March 22, 2025, 10:08 a.m. UTC: This article has been updated to include an embed of the Chainreaction episode.
\nThe 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.
\nThe 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.
\nDespite 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.
\n\u201cIt\u2019s premature to say that debanking is over,\u201d according to Caitlin Long, founder and CEO of Custodia Bank. Long said during Cointelegraph\u2019s Chainreaction daily X show on March 21:
\n\u201cThere 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.\u201d<\/p>\n
The Crypto Debanking Crisis: #CHAINREACTION https:\/\/t.co\/nD4qkkzKnB\u2014 Cointelegraph (@Cointelegraph) March 21, 2025<\/p>\n
\u201cThe Fed is the outlier and the Fed is still controlled by democrats,\u201d explained Long, adding: Source: Cointelegraph.com NewsUpdate 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… <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/125603"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=125603"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/125603\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=125603"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=125603"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=125603"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\n\u201cTrump won\u2019t 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?\u201d
\nLong\u2019s Custodia Bank was repeatedly targeted by the US debanking efforts, which cost the firm months of work and \u201ca couple of million dollars,\u201d she explained.
\nIndustry outrage over alleged debanking reached a crescendo when a June 2024 lawsuit spearheaded by \u200b\u200bCoinbase resulted in the release of letters showing US banking regulators asked certain financial institutions to \u201cpause\u201d crypto banking activities.
\nRelated: FDIC chair, \u2018architect of Operation Chokepoint 2.0\u2019 Martin Gruenberg to resign Jan. 19
\nCrypto debanking is the biggest operational problem in EU: blockchain regulations adviser
\nCryptocurrency debanking is also among the biggest challenges for European cryptocurrency firms, according to Anastasija Plotnikova, co-founder and CEO of blockchain regulatory firm Fideum.
\n\u201cWe\u2019re living in 2025 and debanking is still one of the main operational issues for both small and large crypto firms,\u201d said Plotnikova, adding:
\n\u201cCrypto 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.\u201d
\nRelated: Paolo Ardoino: Competitors and politicians intend to \u2018kill Tether\u2019
\nThe 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\u2019 access to banking services.
\nTrump\u2019s remarks were made during the White House Crypto Summit, where he told industry leaders he was \u201cending Operation Chokepoint 2.0.\u201d
\nSource: Elon MuskAt least 30 tech and crypto founders were \u201csecretly debanked\u201d in the US during Operation Chokepoint 2.0, Cointelegraph reported in November 2024.
\nMagazine: SEC\u2019s U-turn on crypto leaves key questions unansweredRead More<\/a><\/p>","protected":false},"excerpt":{"rendered":"