My understanding is that crypto is expensive to banks because crypto is expensive to any legal entity in general.
And crypto kings not being able to hold their coins in their bank account doesn't sound like "debanking" to me, because it never was banked in the first place (some banks sure did handle it, but not the ones they're crying about).
I also can't get my bank to hold my beany babies either, and nobody calls that being debanked.
Yes it is, crypto is wanting to use banks for the storage of funds, but the banks cannot afford the cost of doing so, because it costs money to manage the massive risk.
It is not about legality. It is about the costs exceed the ability to make a profit, it all has to do with liquidity and capital requirements to mitigate the risks. If you want to blame anyone, blame all the scam artists and criminals that targeted crypto. The banks cannot profitable mitigate the risks. If a bank cannot make profits they will collapse.
And crypto kings not being able to hold their coins in their bank account doesn't sound like "debanking" to me, because it never was banked in the first place (some banks sure did handle it, but not the ones they're crying about).
I also can't get my bank to hold my beany babies either, and nobody calls that being debanked.