An investigation reveals major financial institutions may have “debanked” digital asset companies for inappropriate reasons, contradicting official claims.

A U.S. regulator has identified nine major banks that used inappropriate justifications to deny services to cryptocurrency companies. This finding from the Office of the Comptroller of the Currency (OCC) clashes with recent statements from institutions like JPMorgan, which have maintained that account closures were based on standard risk assessments, not a bias against the crypto industry.

Banks Point to Legal Obligations

Regulators and banks consistently deny any coordinated campaign to cut off the crypto sector’s access to financial services. They argue that these decisions are driven by strict anti-money-laundering (AML) obligations. Federal law mandates that banks monitor and report suspicious transactions, with significant penalties for non-compliance.

Industry Tensions Escalate

The controversy has been fueled by high-profile incidents, leading to renewed allegations of a modern-day “Operation Chokepoint” targeting the industry. Last month, Strike CEO Jack Mallers reported that JPMorgan had abruptly closed his accounts, citing only vague “concerning activity.”

The issue extends beyond individual accounts. Crypto-focused Custodia Bank was denied a Federal Reserve master account after regulators allegedly deemed the digital asset sector inherently unsafe. Former U.S. Solicitor General Donald Verrilli has argued this point in court filings, and several former officials have filed briefs supporting the claim. The case, which is still on appeal, could gain new importance following a recent Supreme Court opinion that curbs deference to federal agencies’ legal interpretations.