Recent Incidents Highlight Ongoing Challenges for Crypto Firms
US crypto firms continue to face account closures and banking restrictions, even as political sentiment appears to shift in favor of digital assets. Despite signals from President Donald Trump's pro-crypto team and expectations of regulatory relief, incidents reported by industry leaders suggest that debanking practices remain active across major financial institutions.
Industry Figures Report Large-Scale Debanking
According to Alex Konanykhin, CEO of Unicoin, US banks are still closing accounts for crypto companies without providing explanations. Konanykhin stated that his firm and its affiliates have been removed from several banks, including Citibank, Chase, Wells Fargo, City National Bank of Florida, and TD Bank. He described the campaign as �highly disruptive and damaging,� noting that Unicoin was dropped by four banks in the past year alone. Konanykhin views these closures as evidence of a widespread, coordinated effort, often referred to as �Operation ChokePoint 3.0� in industry circles.
Big banks have also reportedly increased fees or restricted data access for fintech and crypto apps, making account management more costly or difficult for platforms such as Coinbase and Robinhood.
Proposed Executive Order Seeks to Address Debanking
The Trump administration is reportedly preparing an executive order instructing federal agencies to identify and penalize banks that engage in debanking practices against lawful crypto firms. This order could require banks regulated by the Small Business Administration to reinstate clients who were denied services without cause, and mandate regulators to review complaint data for potential patterns of discrimination.
Uncertain Path Ahead for Regulation and Relief
Legal experts caution that any meaningful change will depend on the exact wording and implementation of new regulations. Elizabeth Blickley, a partner at Fox Rothschild�s Tax Controversy & Litigation Practice, noted that legislative efforts such as the newly signed Genius Act direct agencies like the Federal Reserve to develop stablecoin frameworks, but most proposals do not progress past committee stages. Blickley also warned that future regulations may face significant legal challenges, impacting their effectiveness.
For now, risk-averse attitudes persist in the banking sector. Experts suggest that banks are unlikely to alter their cautious approach unless new rules clearly define and limit their legal or regulatory exposure when serving crypto clients.
Outlook
- Crypto firms continue to face obstacles accessing traditional financial services.
- Pending executive orders and legislation could modify the landscape, but outcomes remain uncertain.
- Sustained policy changes and regulatory clarity will likely be needed to shift bank practices in the US crypto sector.
Related content
Comments
