OCC Says Nine Big Banks Raised Bar, Excluded Crypto Clients — DOJ Probe Likely

The U.S. Office of the Comptroller of the Currency (OCC) found that nine systemically important banks — JPMorgan Chase, Bank of America, Citi, Wells Fargo, U.S. Bank, Capital One, PNC, TD Bank and BMO — used elevated review processes from 2020–2023 that in practice excluded lawful crypto firms and other industries (fossil fuels, firearms, adult entertainment, etc.). The OCC concluded banks imposed extra compliance hurdles and de facto denials based on lawful business activity, not legitimate risk differences. Comptroller Jonathan Gould criticized these market-driven screening practices and said the OCC will refer potential violations of a recent presidential executive order on fair banking access to the U.S. Department of Justice for further investigation. Banks argue stricter screening stems from heightened AML/CTF concerns and higher due-diligence costs after events like FTX. Critics counter that FDIC guidance and regulatory reputation risk also drove “debanking,” especially at smaller banks. The OCC is re-examining prior guidance limiting banks’ roles in crypto custody and stablecoin services, signaling possible future easing. For traders: the probe confirms regulatory scrutiny of bank-crypto relationships, could pressure access to onshore custody, custody-linked liquidity and institutional flows, and may produce legal or guidance outcomes that either tighten or restore banking access for compliant crypto firms. Monitor DOJ actions, OCC guidance updates, and bank policy changes — these will affect liquidity, custodial capacity and institutional participation in crypto markets.