42-year-old Haney has been temporarily suspended since January after both gymnasts and parents alerted to a leadership style filled with verbal and emotional abuse.
The American Gymnastics Association's decision to suspend her for eight years was taken after two months of hearings.
"The independent hearing panel, consisting of three members of the gym - a lawyer, a club owner and a former national team athlete - concluded that Haney has violated the US Gymnastics Federation's Code of Ethics," the union writes of the decision.
Among the gymnasts who testified verbally or in writing about mental abuse are Laurie Hernandez, Olympic gold medalist in Rio 2016, and world champion Riley McCusker, who both had Haney as coach.
The great successes of the US gymnastics team in recent years have been overshadowed by several scandals. The biggest one was arguably Larry Nassar - former national team doctor - who in 2018 was sentenced to life imprisonment for having exposed over 100 female gymnasts to sexual abuse.