OCC First Confirms That Nine Major Banks Excluded Crypto, Energy, and Gun Industries from 2020-23, Trump Administration Calls for Halt to “De-Banking” and Demands Restoring Fair Access
(Background: US OCC Allows Banks to Facilitate Crypto Transactions, Starting to Compete for Coinbase and Binance Business)
(Additional context: US OCC Clears the Way: Banks Can Hold Cryptocurrencies to Pay Gas Fees, Specifically Mentioning Ethereum(ETH))

Table of Contents

• The Invisible Wall Named
• From “Choke Point 2.0” to “Fair Access”
• Costs, Risks, and the “Banking Desert”
• Rising Risks of Judicial Intervention

The US Office of the Comptroller of the Currency (OCC) announced this week that, from 2020 to 2023, nine systemically important banks collectively refused to provide services to industries such as cryptocurrencies, fossil fuels, and guns through high-threshold reviews. This report marks the first written confirmation by regulators of the long-standing crypto community concern of “de-banking,” setting a turn in the financial landscape following the August administrative order by the Trump administration.

The Invisible Wall Named

The revealed list includes JPMorgan Chase, Bank of America, Citibank, Wells Fargo, US Bank, Capital One, PNC Bank, TD Bank, and BMO Bank. OCC found that although these institutions did not explicitly refuse account openings, they used “upgraded reviews” to raise compliance thresholds to effectively deny services.

Initial investigations show that over the past three years, major banks have improperly distinguished clients based on their legitimate business activities, such as restricting the scope of banking services or requiring higher-level reviews for certain customers. These preliminary findings will be forwarded to the US Department of Justice for further investigation, as they may violate the administrative order signed by Trump in August, which prohibits discrimination based on political or religious beliefs when denying banking services.

OCC Director Jonathan Gould harshly criticized bank behavior:

“Banks utilizing market power to conduct moral and political reviews have strayed from the essence of risk management.”

OCC stated that if violations of fair access principles are confirmed, cases will be referred to the Department of Justice.

From “Choke Point 2.0” to “Fair Access”

The report’s weight is rooted in the context of the times. During the Biden administration, there was widespread speculation about “Operation Chokepoint 2.0,” where regulators, citing “reputational risk,” urged banks to distance themselves from controversial clients. However, with Trump returning to the White House and signing new executive orders this year, the tone quickly shifted. The Consumer Financial Services Law Monitor pointed out that the new order mandates banks to base their decisions solely on “legitimate business activities,” prohibiting service denial based on political labels, effectively forcing Wall Street to unwind the barriers built over the past three years.

Costs, Risks, and the “Banking Desert”

Banks emphasize that refusals are not discrimination but are necessary measures against money laundering and fraud. Internal sources note that after the FTX incident, the cost of due diligence for crypto clients has doubled, and “no one wants to touch a hot potato anymore.”

However, withdrawing from mainstream banking services also has side effects. A large number of compliant crypto firms have shifted to offshore or secondary financial institutions, forming what is called the “Crypto Banking Desert.” Caitlin Long, founder of Custodia Bank, believes that what truly stifles innovation is the implicit pressure from the Federal Reserve and the FDIC on small and medium-sized banks, rather than decisions made solely by Wall Street.

Rising Risks of Judicial Intervention

The most concerning development is OCC’s indication of considering involving the Department of Justice. CoinDesk reports that OCC is also moving to revoke earlier letters that restricted banks from participating in crypto custodial services and stablecoins. In other words, if banks exclude legitimate clients based on preferences, the compliance risks may outweigh the benefits of continuing to serve those clients.

Under the framework emphasizing “political neutrality” during the Trump administration, Wall Street needs to reassess risks and rewards. OCC’s report not only clarifies past practices but also rewrites future rules. While the gates that once closed have not fully reopened, they have been pried open by systemic forces, leaving space for markets and regulators to work together to restore the essence of financial services.

!Official website tg banner-1116 | The Moving Chain - The Most Influential Blockchain News Media

📍Related Reports📍

US SEC terminates investigation into Ondo Finance with “no charges”!$ONDO Shares jump above $0.5

US prosecutors seek 12-year sentence for Do Kwon: TerraUSD $40 billion collapse “unprecedented,” verdict expected on 12/11

US CFTC: Federal-level “Spot Crypto Market” Officially Launched, Bitcoin and Ethereum Trading Alongside Gold