U.S. Office of the Comptroller of the Currency confirms large banks' 'industry discrimination'… virtual asset companies also had services restricted

The U.S. Office of the Comptroller of the Currency (OCC) said it confirmed that large banks had restricted legal businesses, including virtual asset (cryptocurrency) firms, based on industry classification alone rather than a risk assessment. The agency emphasized that the practice of using the financial system as a means to target specific industries must stop.

According to Decrypt's report on the 11th (local time), the OCC announced, "Cases were found in which nine major banks limited or refused account openings and service provision based on industry sector despite the businesses being legal." According to the report, the investigation's results are seen as reawakening suspicions of informal regulatory pressure on virtual asset firms raised in recent years.

The report said that those subject to service restrictions included not only virtual asset firms but also legal industries such as oil and gas exploration, coal mining, the firearms industry, private prisons, tobacco and e-cigarettes, and adult content businesses. The OCC said it reviewed nine banks, including JPMorgan Chase, Bank of America, Citibank, Wells Fargo and U.S. Bank, and found that some banks applied separate restrictions or enhanced screening to customers in certain industries.

OCC Comptroller Jonathan Gould said, "We are focused on ending efforts to weaponize finance, whether by regulators or banks." He said that if unfair discrimination is found during the investigation, responsibility will be sought.

The OCC said this is the Phase 1 investigation result, and thousands of complaints are still under review. The agency said it plans to further investigate whether discriminatory practices targeting specific industries existed in the past or currently.

The OCC has also continued a recent trend of easing regulations related to virtual assets. According to the report, last month the agency stated in an interpretive letter that large banks are allowed to hold virtual assets to pay blockchain network fees. This week it expanded the scope by saying banks can process 'riskless principal' trades using virtual assets.