The cryptocurrency industry may continue to face banking-related challenges in the United States, despite a recent wave of positive legislative actions, according to experts in blockchain regulation. This prolonged issue of debanking could stretch until January 2026, as cryptocurrency firms continue to navigate obstacles set by regulators.
Caitlin Long, founder and CEO of Custodia Bank, recently highlighted that the crypto industry is far from overcoming these challenges. Speaking on Cointelegraph’s Chainreaction show, Long warned that two crypto-friendly banks are still under examination by the Federal Reserve. This scrutiny, she explained, includes an overwhelming presence of examiners sent to these institutions.
“There are two crypto-friendly banks under examination by the Fed right now, and an army of examiners was sent into these banks,” said Long. “The Fed is still controlled by Democrats, and Trump won’t be able to appoint a new Fed governor until January 2026.” This timeline could extend the uncertainty for crypto businesses, especially if the Federal Reserve does not align with more crypto-positive stances adopted by other agencies like the OCC and FDIC.
Long’s own Custodia Bank, which has been targeted by U.S. debanking efforts, faced significant operational challenges, including the loss of time and financial resources. Industry-wide frustration reached new heights with a lawsuit spearheaded by Coinbase in June 2024, unveiling evidence that certain U.S. banking regulators had pressured financial institutions to halt crypto-related banking activities.
The issue isn’t just limited to the United States. In the European Union, crypto firms also contend with debanking, as Anastasija Plotnikova, CEO of blockchain regulatory firm Fideum, shared her own struggles with account closures across several years. Despite a brief respite in 2024, debanking remains a persistent issue for both small and large firms.
While some steps have been taken to ease the situation, such as the OCC’s recent shift in its stance on crypto engagement, the outlook for a complete resolution remains uncertain, especially with the ongoing power dynamics within the Federal Reserve.
As the crypto industry braces for potential changes, it’s clear that banking-related challenges will continue to be a major operational hurdle, with significant implications for crypto firms and users alike
