Cryptocurrency De-Banking Will Not End Until January 2026: Caitlin Long

According to blockchain regulatory advisors, efforts to de-bank cryptocurrencies may continue until January 2026, when Trump can appoint a new Federal Reserve chairman.

Despite a recent wave of positive legislation, the cryptocurrency industry in the United States may still face de-banking-related issues, according to views from crypto regulatory experts and industry leaders.

In early 2023, the collapse of crypto-friendly banks sparked initial allegations of "Chokepoint 2.0". Critics, including venture capitalist Nic Carter, described it as an action by the government to pressure banks to cut ties with cryptocurrency companies.

Despite US President Donald Trump making many pro-cryptocurrency decisions, including ordering on March 7th that Bitcoin seized in government criminal cases be used to establish national reserves, the industry may still face banking challenges.

"It's too early to say de-banking is over," said Caitlin Long, founder and CEO of Custodia Bank. Long said on the Cointelegraph 'Chainreaction' daily X program on March 21st:

"Currently, two crypto-friendly banks are under Federal Reserve review, with review teams already entered into these banks, including reviewers from Washington, it's literally an army suppressing these banks."

"The Federal Reserve is an outlier, and it's still controlled by the Democrats," Long explained, adding:

"Trump won't be able to appoint a new Federal Reserve chairman until January. So you can see these clues that might trigger a big fight. Because if the OCC and FDIC overturn their anti-cryptocurrency guidelines, but the Federal Reserve doesn't, what situation will we be in?"

Long's Custodia Bank has repeatedly been a target of US de-banking actions, which has cost the company months of work and "millions of dollars," she explained.

Industry anger over alleged de-banking peaked when a Coinbase-led lawsuit in June 2024 publicly revealed letters showing US banking regulators had requested certain financial institutions "pause" cryptocurrency banking.

Cryptocurrency De-Banking is the Largest Operational Issue in the EU: Blockchain Regulatory Advisor

According to Anastasija Plotnikova, co-founder and CEO of blockchain regulatory company Fideum, cryptocurrency de-banking is also one of the biggest challenges facing European crypto companies.

"We are now in 2025, and de-banking remains one of the primary operational issues for crypto companies of all sizes," Plotnikova said, adding:

"Cryptocurrency de-banking is also an issue in the EU. I had my accounts closed in 2017, 2018, 2019, 2021, and 2022, but 2024 was a good year. From an operational perspective, these issues still exist for users and crypto companies."

These comments came two weeks after the OCC relaxed its stance on bank interactions with cryptocurrencies. This change came just hours after US President Donald Trump pledged to end the long-standing suppression of crypto companies' banking service access.

Trump made these remarks at the White House Cryptocurrency Summit, telling industry leaders he is "ending Chokepoint 2.0".

Cointelegraph reported in November 2024 that at least 30 tech and cryptocurrency founders were "secretly de-banked" during Chokepoint 2.0.

Operation Chokepoint 2.0, Cointelegraph reported in November 2024.