US Banks Restricted Crypto Services, OCC Finds Potential Bias

The Office of the Comptroller of the Currency (OCC), a key U.S. banking regulator, announced on Wednesday that its early-stage investigation revealed a pattern of restrictive practices among the nation’s nine largest financial institutions. According to the OCC, these banks “made inappropriate distinctions among customers in the provision of financial services on the basis of their lawful business activities” over the three-year period from 2020 to 2023. The cryptocurrency industry was specifically cited as one of several politically contentious sectors that faced these barriers to essential banking services.

The regulator’s statement indicates that banks employed two primary methods to limit access: implementing outright policies that restricted banking services to certain industries, or establishing internal procedures that required escalated reviews and special approvals before granting financial services to customers in these categories. While the OCC did not provide specific details about individual banks or the exact nature of the restrictions, the broad finding points to a systemic issue within traditional finance (TradFi) that potentially violates principles of fair access to banking.

For the cryptocurrency industry, which has long grappled with the challenge of securing reliable banking partnerships—often referred to as “debanking”—the OCC’s findings provide official validation of a widespread problem. The period from 2020 to 2023 was marked by significant growth and institutional interest in digital assets, yet this preliminary report suggests that major banks were concurrently enacting policies that limited service access. This creates a paradox where a lawful, rapidly expanding sector faced structural barriers within the core financial system.

The OCC’s characterization of these practices as “inappropriate distinctions” carries significant regulatory weight. It implies that banks may have overstepped by making value judgments on customer risk based on industry type rather than individual financial behavior or creditworthiness. This approach conflicts with the regulator’s own guidance on providing fair access to financial services, which emphasizes that banks should assess customers individually and not broadly exclude entire categories of lawful commerce.

The most consequential development from the OCC’s announcement is the explicit statement that it could refer its findings to the Justice Department. This indicates the regulator views the banks’ actions as potentially serious enough to warrant federal legal review. A Justice Department investigation could examine whether these restrictive practices violated any anti-discrimination statutes or banking regulations, potentially leading to enforcement actions, settlements, or mandated changes to bank policies.

This potential escalation represents a significant shift in the regulatory landscape surrounding bank-crypto relationships. Rather than being solely a matter of banking supervision, the issue now enters the realm of potential legal adjudication. For the nine banks implicated, this creates uncertainty around both their past practices and future approach to serving cryptocurrency firms and other sensitive industries. The outcome could establish important precedents for how financial institutions balance risk management with fair access obligations.

The OCC’s preliminary findings, while lacking specific details, nonetheless mark a critical moment in the ongoing tension between traditional banking and emerging financial sectors. As the regulator continues its investigation and considers a referral to the Justice Department, both banks and cryptocurrency firms face a period of heightened regulatory scrutiny that will likely shape their relationships for years to come.