Crypto glossary
Debanking (Operation Choke Point 2.0)
Debanking is when banks close or refuse accounts; Operation Choke Point 2.0 is the industry name for US pressure on banks to cut off crypto firms.
The original Operation Choke Point was a US Justice Department initiative launched in 2013 that pressured banks to drop customers in legal but disfavoured industries. Crypto advocates revived the name in 2023 to describe what they saw as a coordinated effort by federal banking regulators to discourage banks from serving crypto companies after the market collapse of 2022, through supervisory guidance, informal pressure and requirements to notify regulators before engaging in crypto activities.
Many crypto firms and founders reported losing bank accounts in that period, and the failure of several crypto-friendly banks in early 2023 narrowed their options further. In 2025, documents released by the FDIC showed letters asking banks to pause crypto activities, and US regulators withdrew earlier crypto guidance, removed reputational risk from bank examinations and an executive order addressed politically motivated debanking.
Debanking is not unique to the US or to crypto. Banks in Europe, including Spain, routinely close accounts that receive exchange transfers when they cannot assess the source of funds, which is why documented records help.
Example
A US crypto start-up receives notice that its bank will close its operating account in 30 days without explanation. It spends months finding another bank willing to take a digital asset company.
Related terms
Latest articles on Debanking
- OCC Flags Debanking Policies at Nine US Banks, Including Crypto Firms
- Coinbase Accuses Big Four Banks of Crypto Debanking in Australia
- US Regulator Slams ‘Weaponized Finance’—Calls for Immediate End to Crypto Debanking
- JPMorgan Under Fire — Boycott Calls Rise After Crypto Debanking Allegations and MSTR Crash
- Trump to Sign Order Protecting Crypto from Political Debanking—Here’s What It Means