Crypto firms in the US continue to face account closures and denials for banking services despite policy changes.
Issues with Bank Accounts for Crypto Firms
Crypto firms in the US have been struggling for years with access to banking services. Many experts attribute this to a policy known as 'debanking'. Recent remarks from Alex Rampell, a partner at Andreessen Horowitz, indicate that large banks continue to restrict services for fintech and crypto apps by raising fees for account data access and transfers, a situation labeled 'Operation Chokepoint 3.0'.
President Trump's Statement
Alex Konanykhin, CEO of Unicoin, reported that his company is facing account closures by various banks, including Citibank and Chase. He claimed that this reflects a large-scale operation nationwide. In light of these events, it was revealed that President Trump signed an executive order directing federal regulators to identify and penalize financial institutions involved in debanking practices.
Prospects for Crypto Industry Reform
Elizabeth Blickley, a partner at Fox Rothschild, emphasized that any changes to crypto industry regulation will depend on the final wording of laws and rules. The current banking tendency to be risk-averse towards crypto assets may persist until new regulations clearly reduce perceived risks. 'It's all about making risk-averse entities feel that crypto is less risky,' she noted.
Debanking remains a pertinent issue for the crypto industry in the US. Reforms may improve the situation, but successful implementation will hinge on the clarity and understanding of new regulations.
