In his first weeks leading the U.S. Office of the Comptroller of the Currency (OCC), Jonathan Gould made a groundbreaking admission: crypto debanking is a genuine and ongoing challenge. He confirmed at a recent CoinDesk event that many cryptocurrency businesses and individuals have been systematically dropped by traditional banks. Gould’s remarks come amid an industry-wide struggle with banks refusing services due to perceived risks surrounding crypto activities.
Debanking Reality and Its Impact
Jonathan Gould did not mince words when he said, “Debanking is real.” He told the audience how some companies with corporate accounts were recently told, “we don’t want your business here.” This phenomenon, known as debanking, arises when banks close or refuse accounts, citing risks or reputational concerns often tied to the crypto sector. For many crypto firms, including exchanges and blockchain startups, access to banking is essential for payroll, vendor payments, and day-to-day transactions. The obstacles created by debanking have forced some legitimate crypto firms to operate without reliable banking or even move abroad entirely.
Yet, Gould’s validation of these issues signals a turning point. The OCC is taking the matter seriously and striving to halt debanking practices that unfairly target crypto businesses. This commitment comes as Gould seeks to reframe the U.S. as a welcoming center for digital assets under President Donald Trump’s executive orders promoting crypto innovation.
OCC’s Strategy to Combat Debanking
Under Gould’s leadership, the OCC emphasizes a risk-based approach to crypto clients rather than blanket exclusions. Banks are encouraged to evaluate crypto businesses individually, considering their specific risk profiles and compliance measures like anti-money laundering (AML) and know-your-customer (KYC) controls. Gould also noted that the OCC has acted to remove “politicized or unlawful debanking” within the federal banking system, signaling stronger regulatory oversight to prevent discriminatory practices.
To support this, the OCC issued interpretative guidance clarifying that banks can provide custody services and process stablecoin transactions, provided they meet regulatory standards. Gould’s office is actively engaging with both banks and crypto companies to address concerns about regulatory scrutiny and operational risks. This engagement aims to foster a safer environment where banks can confidently serve crypto clients without fear of penalty or reputation damage.
Moving Forward with Stablecoin Regulations
Parallel to addressing debanking, Gould highlighted a major regulatory priority: stablecoin oversight. The newly enacted GENIUS Act empowers the OCC as a federal regulator for stablecoin issuers operating in the U.S. and foreign issuers whose tokens circulate domestically. Stablecoins, cryptocurrencies pegged to stable assets like the U.S. dollar, support critical functions like payments and decentralized finance.
Gould described the drafting of stablecoin rules as a “big undertaking” that requires balancing innovation with financial stability. The OCC aims to ensure that stablecoin issuers maintain proper reserves, operational soundness, and robust controls to protect consumers. This new regulatory framework is part of a broader effort to integrate stablecoins into the regulated banking system.
Implications for the Crypto Industry and Banking
Gould’s dual focus on debanking and stablecoin regulation offers significant opportunities and challenges for the crypto ecosystem. For crypto firms, it means potential improvements in banking access, which could reduce costly operational disruptions. Clear stablecoin rules may enhance legitimacy and encourage adoption by mainstream financial institutions.
For banks, the guidance paves a safe path to enter crypto markets, provided they implement strong compliance systems. Increased bank participation could bring healthier competition and service choices for crypto clients. Meanwhile, regulators aim to foster innovation without compromising safety, working to align OCC policies with other agencies overseeing securities and banking laws.
Despite progress, obstacles remain. Regulatory uncertainty persists without comprehensive federal crypto laws, and some banks remain cautious given crypto’s volatility and enforcement risks. Stablecoin failures underline the need for robust safeguards, while coordination among regulators remains complex.
Written By Fazal Ul Vahab C H
