Crypto Banking Under Pressure Amid Renewed Debanking Concerns
Banking giant JPMorgan Chase has reportedly closed the personal accounts of Strike CEO Jack Mallers, reigniting fears of widespread debanking in the cryptocurrency sector. Mallers, whose company facilitates Bitcoin Lightning Network payments, stated on X that the bank provided no explanation for the account closures.
“Every time I asked why, they said the same thing: We aren’t allowed to tell you,” Mallers said, highlighting the lack of transparency in the decision. The move has intensified worries about a resurgence of Operation Chokepoint 2.0, a term used by critics to describe potential government pressure on banks to sever ties with crypto businesses.
Senator Cynthia Lummis warned that such actions could drive the digital asset industry overseas. “Actions like JP Morgan’s undermine confidence in traditional banking and put America’s position in digital assets at risk,” Lummis said. She stressed the need to address these practices to make the U.S. the global hub for crypto innovation.
Other industry experts, including Caitlin Long of Custodia Bank, noted that the debanking pressures could continue until a new Federal Reserve governor is appointed in January 2026. Long emphasized that previous debanking efforts have already cost crypto-friendly banks millions of dollars and months of operational work.
The issue first emerged after the collapse of several crypto-friendly banks in early 2023, when at least 30 technology and cryptocurrency founders were reportedly denied banking services. Former President Donald Trump signed an executive order in August 2025 aimed at preventing banks from terminating services to politically or industry-targeted clients, including crypto firms.
Lummis also raised concerns about the FDIC allegedly destroying materials related to Operation Chokepoint 2.0, calling the potential cover-up illegal and warning of possible criminal referrals.
Despite criticism of crypto companies facilitating illicit finance, U.S. banks themselves have faced over $200 billion in fines over the past 20 years for compliance failures, with JPMorgan Chase paying more than $40 billion. This underscores the complex regulatory environment facing both traditional financial institutions and digital asset companies.
The Strike CEO debanking case highlights ongoing tension between crypto businesses and traditional banks, emphasizing the need for clearer policies to support innovation while maintaining financial compliance.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.