Urgent Crypto Debanking Warning: Caitlin Long Exposes Fed’s 2026 Debanking Timeline

Is the nightmare of crypto debanking truly over? Many hoped that with recent positive signals from the US government, including Trump’s stance, the pressure on crypto firms from traditional banks would ease. However, industry veteran Caitlin Long delivers a stark warning: don’t celebrate too soon. According to Long, the shadow of crypto debanking could loom large until January 2026, and it all hinges on the Federal Reserve.

Why Crypto Debanking Fears Persist: Caitlin Long’s Insight

Despite some crypto-friendly moves from parts of the US government, Caitlin Long, CEO of Custodia Bank, believes the threat of crypto debanking is far from over. Speaking on Crypto News Insights’s Chainreaction show, Long highlighted a critical bottleneck: the Federal Reserve. She pointed out that while other regulatory bodies might be shifting towards a more accommodating stance on crypto, the Fed remains a significant obstacle.

Long explained:

“There are two crypto-friendly banks under examination by the Fed right now and an army of examiners was sent into these banks, including the examiners from Washington, a literal army just smothering the banks.”

This ‘army of examiners’ suggests that the Fed is maintaining a cautious, if not outright hostile, approach towards banks engaging with cryptocurrency businesses. This scrutiny creates a chilling effect, potentially deterring banks from serving crypto companies and thus perpetuating crypto debanking.

The 2026 Timeline: Trump’s Influence and the Federal Reserve

Why January 2026? Caitlin Long connects this date to the limited immediate power of President Trump over the Federal Reserve. As Long articulated, “Trump won’t have the ability to appoint a new Fed governor until January.” This means that the current leadership at the Federal Reserve, perceived by some as less crypto-friendly, will remain in place for a considerable time.

This creates a potential conflict. If the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) soften their stance on crypto, but the Federal Reserve doesn’t follow suit, it creates regulatory confusion and uncertainty. Banks might still be hesitant to work with crypto firms if the Fed maintains a restrictive environment. This regulatory tug-of-war could prolong the challenges of crypto debanking.

Operation Chokepoint 2.0: Is History Repeating Itself?

The term “Operation Chokepoint 2.0” has resurfaced in the crypto community, evoking concerns of coordinated government pressure to cut off crypto firms from the traditional banking system. The original Operation Chokepoint, under the Obama administration, targeted industries deemed ‘high-risk.’ Critics argue that similar tactics are being employed against the crypto industry.

While official confirmation of a coordinated “Operation Chokepoint 2.0” is lacking, events like the bank collapses of early 2023 and the revelations from Coinbase’s lawsuit certainly fuel these suspicions. The lawsuit uncovered letters suggesting that US banking regulators urged financial institutions to “pause” crypto banking activities. This raises questions about whether regulatory actions are genuinely about risk management or if they are part of a broader strategy to stifle the crypto industry.

Global Debanking: The EU Experience

Crypto debanking isn’t solely a US problem. Anastasija Plotnikova, CEO of blockchain regulatory firm Fideum, highlights that it’s a significant issue in Europe as well. Plotnikova states, “We’re living in 2025 and debanking is still one of the main operational issues for both small and large crypto firms… Crypto debanking is also a problem here in the EU.” Her personal experiences of account closures across multiple years underscore the persistent nature of this challenge for crypto businesses globally.

Positive Developments and Lingering Concerns

It’s not all doom and gloom. There have been positive developments. Trump’s recent pledge to “end Operation Chokepoint 2.0” and the OCC easing its stance on banks engaging with crypto are encouraging signs. However, Caitlin Long‘s warning serves as a crucial reality check.

Here’s a summary of the key takeaways:

• Federal Reserve’s Role: The Fed’s stance is crucial and currently appears to be the main hurdle to resolving crypto debanking.
• Trump’s Influence: While Trump is perceived as crypto-friendly, his direct influence on the Fed is limited until January 2026.
• Regulatory Disconnect: Potential conflict between different regulatory bodies (OCC, FDIC vs. Fed) could prolong uncertainty.
• Global Issue: Crypto debanking is not limited to the US; it’s a global challenge for crypto firms.
• Cautious Optimism: Recent positive signals are encouraging, but vigilance is needed.

Navigating the Uncertain Path Ahead

The path forward for crypto and banking remains uncertain. While the industry welcomes any easing of restrictions, Caitlin Long‘s perspective emphasizes the need for continued advocacy and engagement with regulators, particularly the Federal Reserve. The crypto community must remain proactive in educating policymakers and pushing for clear, consistent, and innovation-friendly regulations. Until there’s a unified regulatory approach that embraces crypto innovation, the shadow of crypto debanking may continue to linger, potentially until January 2026 and beyond.

Is Operation Chokepoint 2.0 truly ending? Or is it just taking a temporary pause? Only time will tell. But for now, Caitlin Long‘s insights serve as a vital reminder that the fight for fair banking access for the crypto industry is far from over.