Crypto Debanking Could Persist Until 2026, Warns Caitlin Long

Despite recent positive legislative developments in the United States, the cryptocurrency industry may continue facing signifiant debanking challenges until January 2026, according to blockchain regulatory experts. These concerns stem from ongoing scrutiny by U.S. financial regulators and the Federal Reserve’s control over crypto-friendly banking institutions.

Debanking Efforts Are Far from Over

The collapse of crypto-friendly banks in early 2023 led to growing fears about Operation Chokepoint 2.0, which critics, including venture capitalist Nic Carter, described as a government initiative to pressure banks into severing ties with cryptocurrency firms.

While U.S. President Donald Trump has implemented several crypto-positive policies, including a March 7 executive order to use Bitcoin (BTC) seized in criminal cases for a national reserve, the industry may still face ongoing challenges with access to traditional banking services.

Caitlin Long, founder and CEO of Custodia Bank, expressed concerns during an appearance on Cointelegraph’s Chainreaction daily X show on March 21, 2025. Long pointed out that despite recent developments, it’s still premature to declare the end of crypto debanking efforts. She explained:

“There are two crypto-friendly banks under examination by the Fed right now, and an army of examiners was sent into these banks, including examiners from Washington. It’s like a literal army smothering the banks.”

The Federal Reserve's Role in Crypto Debanking

Long went on to note that the Federal Reserve (Fed) remains an outlier in the ongoing debate over crypto debanking, as it continues to scrutinize and regulate crypto-related activities. The Fed's leadership is still largely under Democratic control, and it will be January 2026 before President Trump has the opportunity to appoint a new Fed governor, which could potentially change the regulatory landscape for crypto firms.

“If the Office of the Comptroller of the Currency (OCC) and Federal Deposit Insurance Corporation (FDIC) reverse their anti-crypto guidance but the Fed does not, where does that leave us?” Long asked, highlighting the possible discord between different U.S. regulatory bodies.

Long also shared her personal experience, describing how Custodia Bank—a crypto-friendly institution—was repeatedly targeted by U.S. debanking efforts. These challenges resulted in months of operational delays and millions of dollars in costs for the firm.

Debanking: A Global Issue

While the U.S. continues to grapple with crypto debanking, the issue extends beyond American borders. Anastasija Plotnikova, co-founder and CEO of blockchain regulatory firm Fideum, highlighted that debanking is also a significant challenge for cryptocurrency firms in the European Union.

“Crypto debanking is one of the biggest operational challenges for both small and large crypto firms in the EU,” Plotnikova remarked. She shared her own experience, noting that her accounts were closed multiple times between 2017 and 2022, although 2024 saw some improvement.

“Operationally, these problems exist for both users and crypto firms operating in the region,” she added, emphasizing that even as the situation in the EU appears to improve slightly, debanking remains a major obstacle for many in the industry.

Recent Shifts in U.S. Policy

The issue of debanking came to the forefront once again in 2024, when the OCC eased its stance on how banks can engage with the crypto industry. This shift in policy followed remarks by President Trump at the White House Crypto Summit, where he vowed to end the crackdown on crypto firms’ access to banking services, which he referred to as Operation Chokepoint 2.0.

Trump’s statements were welcomed by many in the crypto space, with at least 30 tech and crypto founders claiming they had been “secretly debanked” during the operation, as reported by Cointelegraph in November 2024. The ongoing scrutiny of crypto-related banking services, however, suggests that the fight for equitable access to banking services is far from over.

Looking Ahead: A Potential Showdown in 2026

As the 2026 deadline approaches, the future of crypto debanking in the U.S. remains uncertain. With the Fed's continued control over crypto regulations and President Trump’s upcoming opportunity to appoint a new Fed governor, the industry could face significant regulatory battles ahead.

While some positive steps have been taken—such as the easing of regulations by the OCC and Trump’s public stance against debanking—the broader issue of crypto firms' access to banking services may persist for years to come, particularly as regulators continue to weigh the risks and benefits of integrating crypto into the broader financial system.

The crypto industry will need to stay vigilant and adapt to these evolving challenges as it works to secure its place in the global financial landscape.