As of March 22, 2025, the cryptocurrency sector in the U.S. continues to face significant challenges related to banking and regulatory issues, despite positive legislative movements. The collapse of crypto-friendly banks in early 2023 raised concerns about a government initiative, dubbed Operation Chokepoint 2.0, which allegedly pressured banks to sever ties with crypto firms. Experts like Caitlin Long warn that the debanking crisis is not over, citing ongoing examinations of several crypto-friendly banks. Although recent policy shifts and executive orders from political leaders aim to support the industry, the risks of banking disruption linger. In Europe, similar debanking challenges impact crypto firms, with calls for clearer regulations to ensure fair banking access for the industry.
Update March 22, 2025: This article has been updated to include an embed of the Chainreaction episode.
The cryptocurrency industry continues to face significant challenges related to banking in the United States, as highlighted by regulatory experts and industry leaders. Despite some recent legislative efforts aimed at supporting the crypto sector, issues such as debanking still loom large.
The troubles began in early 2023 with the collapse of crypto-friendly banks, leading to claims of Operation Chokepoint 2.0. Critics, including venture capitalist Nic Carter, argue that this initiative aimed to pressure banks into severing ties with cryptocurrency companies. Recent actions from US President Donald Trump, including a directive to use seized Bitcoin to create a national reserve, have not yet resolved these banking issues, according to experts.
Caitlin Long, the CEO of Custodia Bank, stated that it is too soon to say that the debanking crisis is over. She mentioned on Cointelegraph’s Chainreaction show that two crypto-friendly banks are currently under scrutiny from the Federal Reserve, which is deploying numerous examiners to investigate these institutions.
This environment creates uncertainty, especially since many are concerned that even if other agencies like the Office of the Comptroller of the Currency (OCC) soften their stances on crypto, the Federal Reserve could maintain restrictive policies.
Debanking doesn’t just affect the US; European cryptocurrency firms are also grappling with similar issues. Anastasija Plotnikova from the blockchain regulatory firm Fideum noted that even in 2025, debanking remains a major concern for both small and large crypto businesses in Europe.
These challenges coincide with recent actions by the OCC to align regulations more closely with the needs of the cryptocurrency sector. However, the shadow of restrictions still hangs over the industry as it navigates its path toward a more supportive banking environment.
As the crypto world watches, the situation remains critical. Industry players must continue advocating for balanced regulations while monitoring the actions of financial regulators that could affect their operations.
Tags: Cryptocurrency, Debanking Crisis, Regulatory Changes, US Banking, Operation Chokepoint 2.0, Caitlin Long, Crypto-friendly Banks, European Crypto Firms.
What does Caitlin Long mean by “Crypto debanking is not over until Jan 2026”?
Caitlin Long is suggesting that changes in banking policies regarding cryptocurrencies will continue until January 2026. This timeframe indicates that the regulatory landscape for crypto will still be evolving.
Why is the timeline until January 2026 important?
This timeline is important because it gives both crypto users and investors an idea of when to expect significant shifts in how cryptocurrencies are treated by banks and regulators.
What challenges do cryptocurrencies face in the banking system?
Cryptocurrencies face challenges like strict regulations, misunderstandings from traditional banks, and concerns about security and fraud. These challenges can limit their acceptance and use in everyday banking.
How can crypto users prepare for these changes?
Crypto users can stay informed by following news about regulations. They should also consider using wallets that are secure and look for banks that are open to working with digital currencies.
What role does Caitlin Long play in this discussion?
Caitlin Long is a significant voice in the crypto world. She is an advocate for better banking solutions for cryptocurrencies and works to bridge the gap between traditional finance and the crypto space.