Custodia Bank founder Caitlin Long hopes a new lawsuit would unearth more details on debanking under former President Joe Biden’s regime.
The Trump Organization has sued Capital One Bank for allegedly closing over 300 bank accounts in 2021 “without cause” as tech bigwigs and crypto leaders lamented the debanking crisis during previous administrations.
Long’s Custodia Bank and other top crypto voices, like Castle Island Ventures partner Nic Carter, have often pointed to Operation Choke Point 2.0, a coordinated clandestine effort by regulators like the Federal Deposit Insurance Corporation to block digital asset companies from banking services.
Silicon Valley businesses decried similar circumstances, attributing the pattern to political targeting and a war against certain tech-heavy firms.
“The actions taken by Capital One and other major financial institutions represent a dangerous precedent that could threaten the operations of countless businesses across the nation, particularly those with a strong and independent voice.”
Eric Trump on Capital One lawsuit
The Trump Org lawsuit comes when tech entrepreneurs and crypto top shots have sought answers about debanking. Lawmakers have held at least one hearing on the matter, and Federal Reserve chair Jerome Powell pledged to aid the anti-debanking effort.
Republican Senator Cynthia Lummis from Wyoming threatened federal prosecution against FDIC staffers, reportedly destroying evidence related to OCP 2.0 and debanking.
While the Capital One lawsuit doesn’t seem directly crypto-linked, Long believes the move may shed light on a broader malpractice from U.S. banking watchdogs.
Till now, crypto debanking enquiries have focused on institutions regulated by the FDIC and the Fed. The Trump Org lawsuit could widen the scope to include potential bad faith oversight from the Office of the Comptroller of the Currency, Long argued on X in response to the Capital One complaint.
