AIMA Calls for Action on Banking Challenges Faced by Crypto Industry

• A survey of 160 crypto hedge funds found that 75% reported issues with accessing or growing banking services for their funds, while none of the traditional alternative investment managers have lost or been denied banking services for their funds or management companies.
• The debanking of these businesses negatively affects operational efficiency, investor confidence and talent acquisition.
• AIMA urges a collaborative approach to address these systemic challenges and is committed to working with the new administration, banking leaders and policymakers to develop solutions.

The Alternative Investment Management Association (AIMA), representing the global alternative investment industry, has today issued a call to address the systemic barriers faced by crypto-focused hedge fund managers in accessing essential banking services. These challenges, highlighted in AIMA’s new research report ‘The Debanking Dilemma’, threaten to stifle innovation and undermine the competitiveness of the US digital assets sector.

AIMA’s findings, based on a comprehensive survey of 160 crypto hedge fund firms and control groups of 20 traditional alternative investment managers and 40 crypto technology firms, reveal a stark disparity.

While none of the traditional alternative investment managers have lost or been denied banking services for their funds or management companies, 75% of crypto hedge fund firms reported issues with accessing/growing banking services for their funds over the same period, and 67% reported issues with accessing/growing banking services for the investment manager. This disconnect of access to basic cash management services raises serious concerns about inclusivity in the financial system.

Key Findings from AIMA’s Survey:

• High Rejection Rates: 75% of crypto hedge fund firms reported issues with accessing or growing banking services for their funds and 67% reported issues with accessing or growing banking services for the investment manager, compared to none of the traditional alternative investment managers surveyed.
• Unexplained Denials: 98% of crypto hedge fund firms that were notified their banking relationship might be terminated were given no clear reason.
• Broader Impacts: The debanking of these businesses negatively affects operational efficiency, investor confidence and talent acquisition. The existence of this problem across the US crypto industry more broadly (colloquially referred to as “Operation Choke Point 2.0”) has broader implications for the US’ reputation as a global leader in financial innovation and open markets.

AIMA’s Call to Action:

AIMA urges a collaborative approach to address these systemic challenges and is committed to work with the new administration, banking leaders and policymakers to develop solutions in the US and wherever else crypto hedge funds are unable to access basic banking services globally.

Specifically, AIMA calls for:

1. Stakeholder Engagement: Foster dialogue between policymakers, banks, and crypto industry leaders to identify actionable solutions.
2. Proportional Risk Management: Encourage banks to adopt risk-based, not blanket, approaches to onboarding crypto businesses.
3. Regulatory Clarity: Establish clear guidelines for crypto hedge fund managers to reduce ambiguity.

Michelle Noyes, Managing Director, Head of Americas at AIMA, commented: “The survey data demonstrates the significant challenges the US crypto hedge funds face in accessing basic banking services. AIMA is committed to finding a path forward for the entire digital asset industry that satisfies robust risk management requirements and supports financial inclusion. By addressing these banking challenges, we can unlock the full potential of the crypto industry to drive economic growth and technological advancement.”

John D’Agostino, Co-Chair of the AIMA Digital Assets Working Group, commented: “Our data underscores the urgency of this issue. Crypto investment managers, who are offering investors diversified exposure to this asset class and achieving remarkable performance, are facing barriers due to systemic underservicing by banks despite having key operational controls in place. This is not just an industry problem—it’s an economic and innovation issue for the US.”

Notes to Editors

AIMA

The Alternative Investment Management Association (AIMA) is the global representative of the alternative investment industry, with around 2,100 corporate members in over 60 countries. AIMA’s fund manager members collectively manage more than US$4 trillion in hedge fund and private credit assets. AIMA draws upon the expertise and diversity of its membership to provide leadership in industry initiatives such as advocacy, policy and regulatory engagement, educational programmes and sound practice guides. AIMA works to raise media and public awareness of the value of the industry.

AIMA set up the Alternative Credit Council (ACC) to help firms focused in the private credit and direct lending space. The ACC currently represents over 250 members that manage over US$2 trillion of private credit assets globally. AIMA is committed to developing skills and education standards and is a co-founder of the Chartered Alternative Investment Analyst designation (CAIA) – the first and only specialised educational standard for alternative investment specialists. AIMA is governed by its Council (Board of Directors).

AIMA’s work in digital assets is overseen by its global Digital Assets Working Group (AIMA DAWG). The AIMA DAWG is a cross-section of senior industry experts, including fund managers, allocators, custodians, exchanges, lawyers, consultants and other service providers. The group is tasked with driving AIMA’s regulatory engagement, thought-leadership initiatives and operational guidance in digital assets.

AIMA Media Contact

Drew Nicol

Associate Director, Research and Communications

AIMA

[email protected]