According to information from Cointelegraph, the Office of the Comptroller of the Currency (OCC) released initial findings indicating that the nine largest banks in the United States limited access to financial services for sectors considered politically sensitive — including the cryptocurrency market — between 2020 and 2023. The regulatory body stated that these institutions made inadequate distinctions between clients with legal business activities during this period. Some policies implemented by the banks restricted the opening of services or required additional approvals before allowing access to certain financial products. However, the OCC did not share specific details about such measures.
The investigation began after an executive order signed by then-President of the USA, Donald Trump, in August, requesting a review of possible cases of de-banking or discrimination motivated by political or religious beliefs. In addition to cryptocurrencies, other segments such as oil and gas, coal mining, arms industry, private prisons, tobacco, manufacturers of electronic smoking devices, and the adult entertainment sector would also have been affected by banking limitations. According to the OCC, in the case of the crypto sector, the restrictions involved issuers, exchanges, and administrators, often for reasons related to financial crime risks.
The Comptroller of the Currency, Jonathan Gould, criticized the behavior of banks, stating that it is concerning to see the largest financial institutions in the country using their license and market power, granted by the government, to adopt de-banking practices. He further emphasized that, although many of these policies have been publicly disclosed, some banks continue to deny such actions. The analysis included institutions such as JPMorgan Chase, Bank of America, Citibank, Wells Fargo, US Bank, Capital One, PNC Bank, TD Bank, and BMO Bank. The OCC continues to examine the case and may refer the result to the Department of Justice.
Nick Anthony, a researcher at the Cato Institute, criticized the report for being incomplete and for not addressing widely known factors that contribute to de-banking. According to him, the document points out banks' failures in severing ties with controversial sectors but ignores that regulators assess institutions also based on reputational risks. Anthony also highlighted that the text mentions restrictions on the crypto sector without noting that the FDIC itself recommended banks to avoid companies in that segment. Furthermore, Republicans from the House Finance Committee stated that the so-called 'pause letters' issued by the FDIC during the Biden administration harmed the digital asset ecosystem.
Caitlin Long, founder and CEO of Custodia Bank, reinforced this view by stating that the FDIC and the Federal Reserve were primarily responsible for the de-banking actions related to crypto during the Biden administration — and not the OCC. She also pointed out that the report focuses on large banks, while the stricter regulatory pressures occurred on small and medium-sized institutions.
