According to Bijié Wǎng, a review of nine major U.S. national banks found that they restricted or denied services to clients based on their legal businesses, such as digital assets, rather than financial risk. The preliminary report was released by the Office of the Comptroller of the Currency (OCC). The findings have reignited concerns about 'chokepoint' tactics, a 2013 initiative by the Justice Department that pressured banks to treat certain legal industries as high-risk. Although the program officially ended in 2017, critics in the crypto space argue that similar informal actions—dubbed 'Chokepoint 2.0'—have continued, with federal regulators allegedly discouraging banks from serving crypto firms. Internal Federal Deposit Insurance Corporation (FDIC) documents released earlier this year appeared to express skepticism about crypto activities within the agency, further fueling these concerns. The review included JPMorgan Chase, Bank of America, Citibank, Wells Fargo, U.S. Bank, Capital One, PNC Bank, TD Bank, and Bank of Montreal. The OCC stated that at least some of these banks imposed special restrictions or increased scrutiny on clients in certain legal industries. Comptroller Jonathan V. Gould emphasized the agency's commitment to ending any attempts to 'weaponize finance,' whether initiated by regulators or banks. The OCC noted that the findings represent only the first phase of the investigation, with thousands of complaints still under review. The agency is assessing whether banks engaged in illegal discrimination against specific industries. The OCC has generally softened its stance on crypto, as confirmed in a recent statement. Last month, the regulator issued a formal interpretive letter allowing major banks to hold crypto on their balance sheets for network fees in 'other legal' blockchain-based banking activities. On Tuesday, it added that banks may now process 'risk-free principal transactions' involving crypto assets.
U.S. Top Banking Regulator Warns Against Debanking and Weaponizing Finance in Crypto Sector
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Summary
U.S. top banking regulator warns of "debanking" and misuse of CFT rules in crypto sector. A review by the OCC found nine major banks imposed restrictions on digital asset clients, not based on risk but business type. The report raises concerns about Chokepoint 2.0 tactics, with critics saying regulators still discourage crypto services. BTC as hedge against inflation remains a key debate point. The OCC is assessing if banks violated anti-discrimination laws. It recently allowed banks to hold crypto for blockchain-based activities and process risk-free transactions.
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