Crypto Firms Face Mounting Regulatory Pressures and Banking Challenges

US banks, including JPMorgan, Bank of America, and Citigroup, are distancing themselves from crypto firms due to increased regulatory pressure and the recent collapse of crypto-friendly banks. Even midsize banks, which have been more crypto-friendly, are turning away from the industry. Banks that were previously open to working with crypto clients are now off-boarding them. The threat of severe oversight of the $1 trillion crypto market seems to be the driving force behind the pullback. Some US banks are still offering their services to stranded crypto victims, while international banks like HSBC, Santander, and Deutsche Bank are willing to connect with crypto firms.