Despite recent policy wins across the US and Australia, the crypto industry continues to grapple with restricted access to traditional banking services. “Debanking” — where banks refuse to serve crypto firms — persists as a major roadblock to growth and legitimacy, raising concerns across major jurisdictions.

Progress in the US, But Problems Persist

In the United States, new policies under the second Trump administration have repealed restrictive guidelines from the Biden era. One major reversal was the scrapping of Staff Accounting Bulletin 121, which had previously made it difficult for banks to custody crypto assets. A new OCC chief, Rodney Hood, has also opened doors for banks to offer custody, stablecoin reserves, and blockchain services.

Yet crypto leaders warn this isn’t enough. Caitlin Long, CEO of Custodia Bank, notes that the Federal Reserve remains under Democrat control, making full-scale reform unlikely until 2026. Long revealed that two crypto-friendly banks are currently under intense Fed examination, highlighting ongoing regulatory pressure despite a friendlier federal stance.

Australia’s Legal Clarity Push

Australia has taken a more proactive approach. The Labor Party has introduced legislation to provide a regulatory framework for the crypto sector. While debanking in Australia wasn’t directly caused by regulation, Edward Carroll of MHC Digital Group believes risk aversion stems from regulatory uncertainty.

Industry voices are optimistic that clearer rules will give banks the confidence to work with compliant crypto firms. The advocacy group Stand With Crypto warned that continued debanking in Australia leads to “reputational damage, lost revenue, and offshoring.”

Canada: A Bleak Outlook for Crypto Banking

Canada’s crypto scene faces an uphill battle. According to Morva Rohani of the Canadian Web3 Council, many firms still face account closures with no clear justification or appeals process. Despite no formal policy against crypto, banks remain highly risk-averse due to AML/KYC concerns and low revenue expectations from crypto clients.

With crypto-sceptic Mark Carney leading in the polls ahead of the April 28 snap election, the Liberal Party’s rise could spell more trouble. Rohani said no legislative efforts have been made to resolve the issue, calling for structured oversight and mandated disclosure for debanking decisions.

Critics: Is Crypto “Hijacking” the Issue?

Not everyone agrees that debanking is an unfair burden. Critics like Molly White, writer of Web3 Is Going Just Great, argue that the crypto industry uses debanking as a tactic to avoid scrutiny. She says crypto firms exaggerate the issue to block or reverse legitimate regulations.

White points out the irony of Coinbase CEO Brian Armstrong applauding the dismantling of the CFPB, the agency tasked with handling consumer banking complaints — including debanking.

In the meantime, many crypto companies have adopted stablecoins for financial operations, bypassing the need for banks. Others are working with smaller regional banks or digital asset-focused trust firms, though this approach increases complexity and costs.

Dennis Porter of Satoshi Action believes these workarounds could eventually lead to deeper integration with mainstream finance, as banks slowly grow more comfortable with the sector.