OCC Debanking Review Puts Big US Banks Under Scrutiny

• OCC review finds major banks restricted several lawful sectors through internal policies.
• Analysts say the report omits regulator-driven pressures, including FDIC guidance on crypto.
• OCC affirms banks can conduct riskless-principal crypto trades as broader review continues.

The Office of the Comptroller of the Currency (OCC) has released preliminary findings from its review of debanking practices at the largest national banks, outlining how several institutions applied restrictions to lawful industries between 2020 and 2023. 

The early conclusions, published under the White House executive order on fair access to financial services, sparked debate among policy analysts and digital-asset advocates who argue that the OCC debanking review omits key regulatory factors.

The OCC examined nine national banks, including JPMorgan Chase, Bank of America, Citibank, Wells Fargo, U.S. Bank, Capital One, PNC, TD Bank, and BMO, to determine whether account terminations or access restrictions had been applied based on customers’ political or religious beliefs or their lawful business activities.

Related: US Regulators Give Banks a New Tool to Fight the Stablecoin Threat

According to the preliminary findings, all reviewed banks maintained policies that created distinctions among customer groups. The agency identified cases in which banks required additional approvals or imposed access constraints on sectors ranging from oil and gas exploration to coal mining, firearms manufacturing, private prisons, tobacco and e-cigarette producers, adult entertainment, and digital-asset businesses.

The review cites at least one instance where a bank restricted services to sectors it described as misaligned with its internal values. Comptroller Jonathan V. Gould noted that the agency intends to ensure such practices do not continue and stated that OCC supervision will address improper actions uncovered in the review.

Analysts Say Regulatory Pressure Shaped Bank Policies

Shortly after the release, policy researcher Nick Anthony noted that the findings did not acknowledge how banks’ reputational-score frameworks, developed in response to regulatory expectations, shape decisions about higher-risk or controversial customers. He also pointed out that the document does not refer to past federal messaging, including FDIC communications advising banks to avoid certain cryptocurrency firms.

Caitlin Long, commenting separately, noted that the report focuses solely on large banks and does not reflect supervisory activity directed at small and mid-sized institutions during the Biden-Warren period. She added that prior regulatory actions by the FDIC and the Federal Reserve played a larger role in shaping banks’ treatment of digital-asset companies.

OCC Clarifies Banks’ Ability To Broker Crypto Transactions

The discussion comes days after the OCC issued Interpretive Letter 1188, which confirms that national banks may conduct riskless-principal crypto-asset transactions. Under this structure, a bank executes offsetting trades between two customers without holding the assets in inventory, operating in a role similar to an agency broker. The OCC confirmed that banks must meet all safety, soundness, and compliance requirements when conducting these activities.

In addition, the agency stated that its review of debanking practices remains ongoing and that further findings, including assessments of political and religious account terminations, will be released upon completion of the evaluation.

Related: OCC Clears US Banks to Hold Crypto ‘As Principal’ for Network Fees