CEO of Custodia Bank analyzed Trump's directive on crypto de-banking.

CEO of Custodia Bank Analyzes Trump's Order on Crypto Debanking

11.08.2025

Miroslava Andreeva On August 7, U.S. President Donald Trump signed an order imposing fines on banks for refusing to service cryptocurrency companies. Custodia founder Caitlin Long analyzed the key aspects of the document.

The decree is aimed at combating the Choke Point 2.0 operation — a practice in which banks, under regulatory pressure, severed ties with crypto firms.

Oversight Instead of Trust

According to Long, the main surprise was the appointment of an independent controller — the Small Business Administration (SBA), which will now oversee the actions of banking regulators (the Fed, FDIC, and OCC).

Trump appointed Kelly Loeffler, the former head of the bitcoin platform Bakkt and a well-known supporter of the crypto industry, as the head of the SBA. As noted by the founder of Custodia, this confirms the seriousness of the current administration's intentions.

"This is extremely indicative — the White House does not trust the three federal banking regulators to independently restore order in their agencies. But the SBA has jurisdiction, so it is being introduced as a super-regulator over the other three. Tactically, this is a creative move. The president is serious," she wrote.

Trump's decree also defines "politicized debanking" as the refusal to service any legitimate business, without specifically naming the crypto sector. According to Long, this sets a precedent: credit organizations will no longer be able to close accounts simply because their client works with digital assets.

"Banks that refused service or closed accounts for legitimate crypto companies will be held accountable," she said.

Custodia also suffered from debanking, despite complying with all regulatory requirements. In July 2021, Long criticized the Fed for its biased attitude towards firms working with cryptocurrency. In 2022, the bank sued the regulator.

The founder of Custodia pointed to political bias in the Fed and FDIC. Donation data shows that 92% of funds from employees of these agencies in 2024 were directed to candidates from the Democratic Party. According to Long, this could have influenced "debanking" decisions under Biden.

Let us remind you that in February 2023, the CEO of the crypto bank admitted to corruption in regulatory matters concerning the industry.

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