Crypto decanking is “still happening” as banks stick to chokepoint policies

Crypto companies have faced closures and denials of banking services accounts under risky labels for years. Many people in the crypto industry believe that leaving the company represents a policy-driven effort to curb digital assets known as “Operation Chalk Point 2.0.”

They believed that the era of many leaving after President Donald Trump’s pro-cryptic team won the election was over. His campaign’s rhetoric and early policy moves demonstrate a friendly environment for digital assets, with some expecting banks to ease restrictions on crypto clients.

However, recent incidents suggest that this practice remains ingrained. Last week, Andreessen Horowitz partner Alex Rampell warned that major banks were narrowing down fintech and crypto apps with Operation Chokepoint 3.0.

Reflecting these concerns, Unicoin CEO Alex Konanykhin told Cointelegraph that US banks continue to close accounts of crypto companies without explanation despite growing political pressure to end their practices.

“Unicoin and its subsidiaries are bailed out by several banks without explanation, so we know first hand about it,” Konanykhin said. He has listed five banks that have severed ties with Unicoin or its subsidiaries over the past few years, including Citibank, Chase, Wells Fargo, Municipal Bank of Florida and TD Bank.

Cointelegraph reached out to all these banks for comment, but did not receive any responses from the publishing.

Operation Chalk Point 3.0 by Alex Rampell: Source: A16Z

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Large-scale “national operation”

Konanykhin claimed that Unicoin was defeated by four banks this year alone. Unicoin is a public reporting company with six years of audited finances and over 4,000 shareholders.

Konanykhin added that the Debanking campaign created conditions that “very destructive and damaging” to US crypto companies, robbing them of access to basic financial services and “suppressing the American crypto industry.”

On Thursday, Bloomberg reported that President Trump would sign an executive order dictating federal bank regulators to identify and punish financial institutions engaged in eliminating.

The order reportedly requires regulators to review complaints data, but banks supervised by small business managers must work to revive clients who have been illegally denied.

Konanykhin expressed hope that the executive order proposed by President Donald Trump to curb desertion could provide relief. “The president knows the pain of banking in person and appears to be determined to stop this form of economic war against American businesses,” he said.

He said ending Dabaking could help us regain global leadership. “Ending the war with crypto would boost the US crypto industry, which could have an international impact as much as Hollywood is in entertainment and Silicon Valley,” he pointed out.

Related: Trump orders investigation into cipher and political obstruction claims: WSJ

Crypto reforms depend on the final wording of the rules.

Meanwhile, Elizabeth Blickley, Fox Rothschild’s partner in tax debate and litigation practices, said Trump has directed agencies and Congress to review how crypto is integrated into mainstream finance, but that meaningful changes will depend on the final wording of regulations and law.

She pointed out the recently signed genius law. This pointed to the Federal Reserve Stablecoin Accreditation Review Board for 180 days to design a regulatory framework.

Blickley warned that most legislation in Congress would not leave the committee and that the final legislation would likely face lawsuits from both sides of the regulatory debate. “Regulations may be in confronted with the President’s demands or passed laws, but there are few applications or disproportionate implications based solely on word selection,” she said.

For now, Blickley said the bank is likely to continue its risk aversion stance on crypto until the new rules reduce the obviously recognized risk. “It’s all about creating risk-away entities, and people feel that codes are less risky,” she concluded.

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