Custodia Bank founder Caitlin Long believes that a new lawsuit filed by the Trump Organization against Capital One Bank could reveal deeper issues surrounding debanking in the U.S., particularly under former President Joe Biden’s administration.
Trump Organization’s Lawsuit Against Capital One
On March 7, 2025, the Trump Organization filed a lawsuit in Miami-Dade County, alleging that Capital One Bank unjustly terminated over 300 of its accounts in 2021 “without cause.” The lawsuit has reignited concerns over the growing trend of debanking, a practice in which financial institutions deny or revoke banking services without a clear justification.
Eric Trump, executive vice president of the Trump Organization, criticized Capital One’s actions, warning that such practices set a dangerous precedent for businesses that maintain strong and independent voices.
“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.”
A Larger Battle Over Debanking
The Trump Organization’s lawsuit comes amid broader concerns raised by the tech and crypto sectors about political and financial discrimination. High-profile industry figures, including Nic Carter of Castle Island Ventures, have linked debanking to what they call “Operation Choke Point 2.0,” a supposed coordinated effort by regulators, including the Federal Deposit Insurance Corporation (FDIC), to cut off digital asset companies from banking services.
The issue of debanking has extended beyond crypto, with Silicon Valley entrepreneurs also voicing frustrations over what they perceive as targeted action against tech firms. These concerns have sparked inquiries from lawmakers, with at least one congressional hearing held on the subject. Federal Reserve Chair Jerome Powell recently pledged to assist in efforts to combat unjustified debanking.
Political and Regulatory Implications
Senator Cynthia Lummis (R-WY), a vocal advocate for financial inclusion and cryptocurrency regulation, has taken a firm stance on the issue. She recently threatened federal prosecution against FDIC officials accused of destroying evidence related to Operation Choke Point 2.0 and its impact on debanking.
While the Trump Organization’s lawsuit does not explicitly mention crypto, Caitlin Long argues that it could uncover a broader pattern of regulatory malpractice. Until now, crypto debanking investigations have primarily focused on financial institutions regulated by the FDIC and the Federal Reserve. However, the Capital One lawsuit could extend scrutiny to the Office of the Comptroller of the Currency (OCC), a key banking regulator.
“The bank sued by the Trumps is an OCC-regulated bank with a Fed-regulated holding company. So far, most #debanking info that has come out publicly is from the FDIC & Fed (through FOIA & lawsuits), but if this new lawsuit reaches discovery then OCC debanking info could come out too.” — Caitlin Long
What’s Next?
As the Trump Organization pursues its case against Capital One, industry leaders and policymakers will be watching closely to see if the lawsuit brings new revelations about debanking practices across the financial sector. If the legal proceedings reach the discovery phase, previously undisclosed details about regulatory oversight—or lack thereof—could come to light.
The lawsuit could also increase pressure on federal agencies and lawmakers to provide greater transparency into how financial institutions decide to terminate banking relationships. With crypto, tech, and political entities all raising concerns, the broader implications of debanking remain a key issue in the evolving landscape of financial regulation.
For now, the legal battle is just beginning, but its potential impact could be far-reaching.
