US Regulator Slams Nine Top Banks for Crypto Debanking

Core Insights - The U.S. Office of the Comptroller of the Currency (OCC) report indicates that the nine largest banks in the U.S. have imposed "inappropriate" restrictions on lawful crypto businesses, confirming industry claims of discriminatory debanking [1][2] - The OCC's findings challenge the banks' use of a "reputational risk" framework to exclude crypto businesses, requiring them to justify risk-based decisions on an individual basis [4][5] Summary by Sections Findings of the Report - The OCC's review covered major banks including JPMorgan Chase, Bank of America, Citibank, and others, revealing escalated approval requirements or sector restrictions from 2020 to 2023 [1][2] - The report highlights that other industries, such as oil and gas, firearms, and private prisons, were also affected by similar restrictions [2] Regulatory Implications - The OCC warns that future occurrences of discriminatory practices will lead to enforcement actions, including potential fines and consent decrees [2][3] - The report signals a shift in regulatory posture, emphasizing accountability and lawful access to financial services for crypto firms [5][6] Context and Background - The investigation aligns with President Trump's August executive order aimed at addressing the debanking of certain industries, including digital assets [6][7] - The OCC has previously proposed rules requiring banks to evaluate clients based on measurable risk factors rather than blanket exclusions [7]