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Crypto enterprises have encountered account terminations and refusals of banking services for several years under the guise of de-risking. Numerous individuals in the crypto sector contend that the removal of banking support signifies a policy-driven initiative to stifle digital assets, dubbed “Operation ChokePoint 2.0.”
Following President Donald Trump’s pro-crypto team securing the election, many anticipated that the period of debanking had concluded. His campaign rhetoric and initial policy actions hinted at a more favorable atmosphere for digital assets, leading some to believe banks would relax restrictions on crypto clients.
Nevertheless, recent occurrences indicate that the practice is still deeply rooted. Last week, Andreessen Horowitz partner Alex Rampell alerted that major banks are pressuring fintech and crypto applications in “Operation ChokePoint 3.0,” by increasing fees for accessing account information or transferring funds to platforms like Coinbase and Robinhood.
Echoing these apprehensions, Alex Konanykhin, CEO of Unicoin, informed Cointelegraph that US banks persist in terminating accounts for crypto firms without justification, despite increasing political pressure to halt the practice.
“We have experienced this directly, as Unicoin and its subsidiaries have been debanked, without justifications, by multiple banks,” Konanykhin stated. He mentioned five banks that have severed ties with Unicoin or its subsidiaries over the past years, including Citibank, Chase, Wells Fargo, City National Bank of Florida, and TD Bank.
Cointelegraph contacted each of these banks for a statement but had not received any reply by the time of publication.
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Widespread “nationwide initiative”
Konanykhin asserted that Unicoin was debanked by four banks this year alone, which “implies that ChokePoint is a widespread nationwide initiative.” Unicoin is a publicly reporting corporation with six years of audited financial statements and more than 4,000 shareholders.
Konanykhin noted that the debanking initiative has caused “significantly disruptive and harmful” conditions for crypto companies in the US, depriving them of basic financial services and “undermining the American crypto sector.”
On Thursday, Bloomberg reported that President Trump will issue an executive order directing federal bank regulators to identify and penalize financial institutions that have engaged in debanking.
The order will, reportedly, obligate regulators to examine complaint data, while banks supervised by the Small Business Administration must work to reinstate clients who were unjustly denied services.
Konanykhin expressed optimism that President Donald Trump’s proposed executive directive to combat debanking might provide relief. “The President comprehends the challenges of debanking firsthand and seems resolute in putting an end to this form of economic warfare against American enterprises,” he remarked.
He commented that terminating debanking could facilitate the US crypto sector’s return to global prominence. “Ending the War on Crypto will enhance the American crypto industry. It may achieve an international impact comparable to that of Hollywood in entertainment or Silicon Valley in IT,” he observed.
Related: Trump to initiate investigation of crypto and political debanking allegations: WSJ
Crypto reform depends on final phrasing of regulations
Meanwhile, Elizabeth Blickley, a partner at Fox Rothschild’s Tax Controversy & Litigation Practice, conveyed that while Trump has directed agencies and Congress to evaluate how crypto can be incorporated into mainstream finance, significant changes will hinge on the final language of regulations and laws.
She highlighted the recently enacted Genius Act, which grants the Federal Reserve’s Stablecoin Certification Review Committee 180 days to create a regulatory framework.
Blickley cautioned that most bills in Congress rarely make it beyond committees and that any future legislation will likely encounter litigation from both ends of the regulatory spectrum. “A regulation may appear to comply with the President’s request or a law passed, yet have minimal applicability or disproportionate outcomes solely based on wording,” she stated.
For the time being, Blickley remarked, banks will probably maintain their risk-averse approach toward crypto until new rules unambiguously mitigate perceived risks. “It’s about ensuring risk-averse entities and individuals perceive crypto as less risky,” she concluded.
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