OCC and FDIC Finalize Rules to Combat Crypto Debanking

The Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) have finalized rules to combat crypto debanking, a practice known as 'Operation Chokepoint 2.0.'

The rule defines what constitutes 'unsafe or unsound practices' in bank supervision, aiming to prevent banks from restricting access to financial services for crypto-related businesses and individuals.

Head of the OCC Jonathan V. Gould said the move will help bank leaders focus on material financial risks instead of getting bogged down by concerns over policies, process, documentation, and other enforcement standards.

The new rules come after a period of ambiguity surrounding the term 'unsafe or unsound practices,' which was left to the discretion of bank examiners. This led to widespread debanking of crypto firms and their clients in 2022 under the Biden-era administration.