Despite recent positive regulatory moves, the U.S. crypto industry may still be struggling with banking restrictions, according to industry insiders and experts.
Concerns about banks cutting ties with crypto firms resurfaced after several crypto-friendly institutions collapsed in 2023. Some critics contended that this was part of a larger government initiative—Operation Chokepoint 2.0—to coerce banks into cutting ties with crypto companies.
While President Donald Trump has made several crypto-friendly decisions, such as the March 7 executive order to create a national Bitcoin reserve using seized assets, industry leaders say that banking challenges persist.
Custodia Bank CEO Caitlin Long warned that it’s too early to declare the issue resolved. She pointed out that two banks known for supporting crypto are currently under heavy scrutiny by the Federal Reserve, with a large number of examiners, including officials from Washington, closely monitoring them.
Long noted that the Federal Reserve remains the biggest obstacle, noting that it is still under the Democrats’ control. She highlighted a potential conflict ahead, as Trump won’t be able to appoint a new governor until January 2026. If other regulatory bodies like the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) revoke their anti-crypto policies but the Fed doesn’t, the industry could face a new challenge, she explained.
Custodia Bank itself has faced repeated setbacks due to these banking restrictions, resulting in months of delays and significant financial losses, according to Long.
The issue gained widespread attention in June last year when a lawsuit led by Coinbase exposed documents showing that U.S. regulators had advised banks to pause their crypto-related services.
Debanking isn’t limited to the U.S. European crypto firms are also struggling with banking access, according to Anastasija Plotnikova, CEO of Fideum, a blockchain regulatory company. She noted that debanking remains a major operational challenge in 2025, affecting both small startups and large companies. Plotnikova shared her own experience of having accounts shut down multiple times between 2017 and 2022, though she acknowledged that 2024 had been relatively stable for her.
These remarks came days after the OCC relaxed its stance on banks working with crypto firms. The shift in policy happened a few hours after Trump pledged to end restrictive banking measures against the industry during the White House Cryptocurrency Summit. At that event, he announced the termination of Operation Chokepoint 2.0.
Reports indicate that at least 30 crypto and tech founders in the U.S. lost banking access during the operation. Major industry firms like HIVE Blockchain Technologies Ltd. (NASDAQ: HIVE) (TSX.V: HIVE) hope that the industry regains full access to banking services since the lack of access can adversely impact growth and innovation within the space.
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