U.S. banks will now act independently and treat cryptocurrencies just like any other banking service, without seeking approval from authorized entities. This pro-crypto move comes after the Federal Reserve, the FDIC, Office of the Comptroller of the Currency, and the NCUA withdrew several of the documents that constrained banks to follow the stipulated protocols, when dealing with cryptocurrencies.
A blog post from Davis Wright Tremaine stated, “In its first iteration from 2012-2017, it was known as Operation Choke Point—where through informal guidance, the federal banking agencies (the Federal Reserve, OCC, FDIC, NCUA) leveraged reputational risk as part of the supervisory ratings to pressure banks to refuse banking services or to close the accounts of lawful businesses, primarily from the same industries that were not favored by the leadership of the federal banking agencies at the time.”
However, with the introduction of the Financial Integrity and Regulation Management (FIRM) Act, Senate Banking Committee Chairman Tim Scott (R-SC) sought to protect financial freedom, during a hearing back in February, 2025.
In particular, “The FIRM Act would ensure that banks make decisions based on clear, objective criteria such as financial health and compliance with the law—not subjective judgments about the reputational risk of certain industries, including cryptocurrency.[2] The bill would prohibit banks from refusing to serve legal businesses unless there is a legitimate financial risk involved.”
