Major US Banks Engage in Discriminatory Practices Against Crypto and Political Customers
Key Summary
A federal regulator has found that nine of the largest US banks have policies that cut off or limit service to Americans based on their political or religious beliefs and lawful businesses. The Office of the Comptroller of the Currency (OCC) reviewed nearly 100,000 complaints and 50,000 documents totaling 420,000 pages from the banks, revealing a pattern of discriminatory practices that disadvantage customers and lawful businesses. The OCC will assess changes to the regulatory and supervisory framework applicable to the largest banks to reduce the likelihood of these harmful practices recurring in the future.
Precedent & Market Context
The OCC's report highlights the growing regulatory uncertainty and market instability affecting the crypto industry. Previous milestones, such as the OCC flags 9 top US banks for debanking crypto industry between 2020-2025: Report, have shown that major US banks have been taking steps to limit their services to crypto firms and their founders. The OCC's report provides irrefutable evidence that the nation's largest banks have denied, debanked and discriminated against customers and lawful businesses.The OCC's Findings
The OCC reviewed nearly 100,000 complaints and 50,000 documents totaling 420,000 pages from the banks. The regulator found that the banks had policies that cut off or limited service to Americans over their political or religious beliefs and lawful businesses. The banks are JPMorgan Chase Bank, Bank of America, Citibank, Wells Fargo Bank, U.S. Bank, Capital One, PNC Bank, TD Bank and BMO Bank.The OCC's report also highlights the banks' restriction of entire industries, including oil and gas exploration, coal mining, firearms, detention facilities, tobacco and digital assets. For example, a bank-owned payment processor closed the account of a merchant selling Make America Great Again merchandise in February of 2021. In another example, a bank declined to serve a public education organization whose political arm endorsed only Democratic candidates.
The OCC's report provides evidence of a pattern of discriminatory practices by the nation's largest banks. The regulator has stated that it will assess changes to the regulatory and supervisory framework applicable to the largest banks to reduce the likelihood of these harmful practices recurring in the future. The findings highlight the need for greater oversight and regulation to protect customers and lawful businesses from discriminatory practices.
The OCC's report has significant implications for the crypto industry and the nation's largest banks. The regulator's assessment of changes to the regulatory and supervisory framework applicable to the largest banks will help to reduce the likelihood of discriminatory practices. The findings also highlight the need for greater oversight and regulation to protect customers and lawful businesses from discriminatory practices.
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