Simply put
- The OCC discovered that nine prominent national banks either limit or refuse services to legitimate businesses, including those in the crypto sector, focusing on the industry instead of actual financial risk.
- This has sparked renewed fears regarding “Operation Choke Point 2.0,” as critics assert that regulators have subtly obstructed banks from servicing digital asset firms.
- Comptroller Jonathan Gould indicated that the agency is dedicated to eliminating efforts of “financial weaponization,” with many complaints still under examination.
A report involving nine major national banks revealed that they restrict or deny services to certain customers, like those involved in digital assets, based on the type of business rather than on financial risk.
The findings brought back old worries about Operation Choke Point, a 2013 initiative by the Justice Department aimed at compelling banks to categorize specific legal industries as high-risk.
Although the initiative officially ended in 2017, critics of the crypto sector argue that similar tactics have resurfaced more recently, branded as “Operation Choke Point 2.0.” Under this narrative, federal regulators are said to have indirectly hindered banks from servicing crypto firms. Additionally, internal FDIC documents released this year showed skepticism regarding cryptocurrency activities, amplifying these concerns.
Businesses that have faced scrutiny include those linked to oil and gas, coal mining, firearms, private incarceration, tobacco, e-cigarettes, and adult entertainment.
The OCC review analyzed the policies of major banks like JPMorgan Chase, Bank of America, Citibank, Wells Fargo, US Bank, Capital One, PNC Bank, TD Bank, and BMO Bank. The agency noted that many of these banks impose unique restrictions or heightened scrutiny on certain clients, even when their operations are lawful.
Gould articulated that the report underscores the agency’s commitment to preventing finance from being weaponized, whether instigated by regulators or by banks themselves. He also mentioned that the OCC intends to hold these banks accountable as investigations continue.
The agency emphasized that these findings mark just the initial phase of their investigation into potential discrimination against certain industries, with thousands of complaints currently under review.
The OCC has generally taken a more lenient stance on cryptocurrencies. Recently, the agency stated that major banks can officially hold cryptocurrencies to cover network fees related to “otherwise permitted” banking activities. Additionally, it was clarified that banks may engage in “risk-free principal transactions” using crypto assets.
