debanking

Most account closures in the U.S. — a phenomenon known as debanking — are driven more by government pressure than private biases, according to a new report from the Cato Institute. The analysis shows that federal influence over financial institutions is far greater than commonly acknowledged.
What is debanking?
Debanking refers to the sudden and often unexplained termination of accounts — not only by banks, but also by credit unions, crypto exchanges, payment apps, and other financial entities.
Economist Nicholas Anthony explains that debanking typically occurs for one of three reasons:

🔹 Operational grounds, such as the bank no longer wanting to serve a client

🔹 Ideological motives, such as religious or political beliefs

🔹 Government pressure, either direct or indirect
According to Anthony, it is this third category — government-driven closures — that poses the greatest threat.

Hidden Hand: How Washington Influences Account Closures
The Cato Institute warns that U.S. authorities often influence financial institutions behind the scenes, nudging them to drop certain clients. While these closures may appear voluntary, they’re frequently rooted in pressure from federal regulators.
Key findings include:

🔹 72% of conservatives believe the real issue lies in government overreach

🔹 This public sentiment has already begun influencing federal policy, especially during the Trump administration, which issued executive orders on debanking and appointed pro-crypto officials to agencies like the SEC

Legislative Reform Proposed
Anthony argues that the current framework transforms banks into unofficial enforcement arms of federal agencies, incentivizing them to cut ties with clients to reduce regulatory risks.
He proposes three major reforms:

🔹 Repeal secrecy rules that prevent banks from explaining account closures

🔹 Eliminate reputation risk regulations

🔹 Reform the Bank Secrecy Act to protect consumers from arbitrary debanking

Crypto Industry in the Crosshairs
The crypto sector has been particularly vulnerable to debanking. Many firms have found themselves cut off from the traditional banking system — often without warning or justification.
Anthony cites an example where the FDIC (Federal Deposit Insurance Corporation) allegedly sent private letters to banks, instructing them to cease crypto-related activities — with no timeline, meetings, or explanations. In practice, these letters functioned as “termination orders.”
He also references a 2015 incident where money-transfer businesses serving Somalia were rapidly shut out of the banking system after U.S. authorities launched a crackdown on alleged money laundering.

Community Pushback & JPMorgan Allegations
In a December interview with Fox News, JPMorgan CEO Jamie Dimon denied claims that the bank had closed customer accounts due to religious or political views. His statement followed accusations from Jack Mallers (CEO of Bitcoin Lightning app Strike) and Houston Morgan, who said their personal accounts were closed without explanation.

Conclusion: The Invisible Hand of the State
The Cato Institute report paints a worrying picture: financial freedom in the U.S. is increasingly shaped by government intervention, not market forces.
Anthony concludes:
“If Congress fails to act, debanking will become a powerful tool — not just against crypto, but against the very principle of free access to financial services.”

#debanking , #DigitalAssets , #CryptoRisks , #JPMorgan , #SEC

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ВАШИНГТОН (Reuters) – Банки США та їхні регулюючі органи будуть на гарячому місці в середу, оскільки законодавці вивчатимуть претензії консерваторів та деяких компаній про те, що вони відмовляють у наданні послуг певним галузям чи політичним групам.
Банківський комітет Сенату проведе слухання щодо того, що зазвичай називають дебанкінгом, заслухавши свідчення експертів у цій галузі та власників бізнесу, які стверджують, що їм несправедливо було відмовлено в доступі до банківських продуктів.
Банківська галузь чинить запеклий опір звинуваченням у тому, що вона відмовляє в наданні послуг з ідеологічних причин. Натомість він стверджував, що обтяжливі та непрозорі правила та практика банківського нагляду іноді ускладнюють надання послуг банкам, або пояснював, чому вони не можуть.

Слухання в середу можуть вказати на те, які політичні відповіді можуть бути в розробці, включно з потенційними новими правилами або законодавством, що встановлює національний стандарт для надання банківських послуг.
«Це слухання є початком роботи комітету, щоб покласти край цій практиці, і стане можливістю почути безпосередньо свідків про їхній досвід дебанкінгу, що, у свою чергу, допоможе сформувати рішення для вирішення цього питання, включаючи притягнення до відповідальності регуляторів і фінансових установ, які використовують свою владу», — сказав речник сенатора Тіма Скотта, голови комісії від Республіканської партії.
Серед свідків, які дадуть свідчення, є голова Anchorage Digital, криптоплатформи, яка стверджує, що її дебанкували, і Old Glory Bank, банку, заснованого в 2022 році, який спеціально називає себе відповіддю на скарги на дебанкінг проти великих кредиторів.
Штати, очолювані республіканцями, просувають законодавство, щоб перешкоджати дискримінації з боку банків, а набір різноманітних законів, покликаних гарантувати чесне кредитування банків, призвело до розчарування в галузі.

Тривала суперечка привернула заголовки газет у січні, коли президент Дональд Трамп звинуватив генеральних директорів Bank of America та JPMorgan Chase (NYSE: JPM ) у тому, що вони не надають банківських послуг деяким консерваторам, повторюючи скарги на «пробуджений капіталізм».
Банки відповіли, що не відмовляють у послугах з політичних мотивів. Галузь готує новий поштовх до більш чітких правил, виступаючи за чіткий національний стандарт щодо справедливого доступу до фінансових послуг, ясність щодо законів про боротьбу з відмиванням грошей, які можуть змусити банки закривати рахунки, і спрощений банківський нагляд, щоб допомогти компаніям краще зрозуміти, кому вони можуть надавати послуги.
«Ми вважаємо, що лише федеральне законодавство може забезпечити ясність і захист. Федеральне законодавство також може попереджати конфліктні закони штатів, що було б позитивним для банків», — написала Джарет Зайберг, аналітик TD Cowen, у примітці.


#debanking
#cryptonews
#news
#USBitcoinReserves
#btc

In a recent and outspoken message on social media platform X, David Sacks, the White House’s head of artificial intelligence and cryptocurrency initiatives, openly criticized several major U.S. banks for continuing to restrict or outright ban access to Bitcoin ETFs (Exchange-Traded Funds) on their wealth management platforms. His comments have sparked fresh debates about the banking industry’s relationship with cryptocurrency and whether the controversial practice of “debanking” is still a lurking issue in the American financial system.

---

What Did David Sacks Say?

David Sacks, who holds a prominent position overseeing AI and crypto policies at the White House, voiced his frustration clearly:

> “Why do leading American banks still ban or restrict access to Bitcoin ETFs on their wealth management platforms? Is this the last trace of ‘debanking’?”

This pointed question strikes at the heart of a longstanding tension between the traditional financial industry and the rapidly growing cryptocurrency ecosystem.

---

Understanding Bitcoin ETFs and Their Importance

Bitcoin ETFs are financial products that allow investors to gain exposure to Bitcoin without actually holding the cryptocurrency itself. They trade on regulated stock exchanges, making them an attractive, accessible, and safer way for many investors — including institutional and retail clients — to participate in Bitcoin’s potential upside.

The approval and widespread availability of Bitcoin ETFs in major financial markets have been seen as critical steps toward mainstream crypto adoption. Yet, despite regulatory progress and growing demand, some U.S. banks continue to limit or block their customers from investing in these products via their wealth management services.

---

Why Are Banks Restricting Bitcoin ETF Access?

Banks cite several reasons for their cautious stance:

Regulatory uncertainty: Despite growing clarity, some banks remain wary about compliance risks related to cryptocurrency.

Risk aversion: Banks prioritize safeguarding client assets and may view crypto-linked products as too volatile or risky.

Conservative culture: Traditional financial institutions often take longer to embrace disruptive technologies.

However, these justifications are increasingly challenged by crypto advocates, regulators, and now even high-level government officials like David Sacks, who see these restrictions as outdated barriers to innovation and financial inclusion.

---

The Shadow of “Debanking”

The term “debanking” refers to the practice where banks close accounts or deny financial services to individuals or businesses involved in cryptocurrency. This issue has been a source of intense controversy, as many crypto users and firms have found themselves unable to access basic banking functions due to their association with digital assets.

David Sacks’ remark raises the question: Is the continued ban on Bitcoin ETF access just another form of debanking — a subtle but damaging way banks limit crypto exposure?

---

What This Means for Investors and the Crypto Industry

The reluctance of major U.S. banks to fully embrace Bitcoin ETFs on their platforms poses several challenges:

Limited access for mainstream investors: Many retail and institutional clients rely on bank-managed wealth platforms for investing. Restrictions limit their ability to diversify into crypto assets.

Slower crypto adoption: Banks’ hesitance can slow down the integration of cryptocurrencies into everyday finance.

Missed opportunities: Investors may lose out on potential gains by being blocked from relatively safer crypto investment vehicles like ETFs.

On the other hand, public criticism from influential government figures signals growing pressure on financial institutions to adapt and open their doors wider to crypto innovations.

---

The Road Ahead: Will Banks Change Their Approach?

As the crypto industry continues its rapid growth, and as regulatory frameworks become clearer, it’s likely that resistance from traditional banks will gradually diminish. The White House’s spotlight on this issue could accelerate change by encouraging banks to:

Reevaluate their crypto policies

Develop compliant and secure crypto investment offerings

Improve financial inclusion for all investor types

Bitcoin ETFs represent a key bridge between traditional finance and the crypto world — and greater access to these products could be a major catalyst for the next phase of cryptocurrency adoption in the U.S.

---

Final Thoughts 💡

David Sacks’ public call-out of U.S. banks for restricting Bitcoin ETF access highlights a critical friction point in the evolving financial landscape. While banks remain cautious, the demand for crypto exposure among investors is stronger than ever.

For crypto enthusiasts, investors, and policymakers, the question now is: Will banks finally break down these barriers, or will “debanking” continue in a new form?

One thing is clear — as cryptocurrencies become more mainstream, the pressure on financial institutions to adapt is only going to intensify.

$BTC

#BitcoinETF #Debanking #CryptoAdoption #USBanking #FinancialInnovation

📌 Từng là người chỉ trích crypto mạnh mẽ, Thượng nghị sĩ Elizabeth Warren giờ đây lại muốn hợp tác với Trump để bảo vệ các công ty tiền số khỏi bị ngân hàng từ chối dịch vụ.
🏦 "Debanking" – Vấn Đề Thực Sự?
Trong một phiên điều trần tại Thượng viện Mỹ vào thứ Tư, #ElizabethWarren , một trong những chính trị gia phản đối crypto lâu năm nhất, đã khiến nhiều người bất ngờ khi lên tiếng chống lại việc các công ty tiền số bị ngân hàng từ chối phục vụ – hay còn gọi là "debanking".
🔹 "Debanking là một vấn đề thực sự. Điều này không nên xảy ra, và chúng ta cần tìm hiểu tại sao cũng như ai chịu trách nhiệm." – Warren phát biểu trước Ủy ban Ngân hàng Thượng viện.
Đây là một sự thay đổi đáng kể so với lập trường trước đây của bà, khi Warren từng bị các lãnh đạo crypto, bao gồm CEO Coinbase Brian Armstrong, cáo buộc đứng sau "Chiến dịch Chokepoint 2.0" – một kế hoạch ngầm nhằm gây áp lực buộc các ngân hàng không phục vụ khách hàng liên quan đến crypto.
🔄 Hợp Tác Bất Ngờ Với Trump?
Warren cho biết bà sẵn sàng hợp tác với chính quyền Trump và các thượng nghị sĩ đảng Cộng hòa để ngăn chặn tình trạng này.
💬 "Tôi không nghĩ rằng các công ty crypto nên bị loại khỏi hệ thống ngân hàng của chúng ta." – Warren nói với Nathan McCauley, CEO của Anchorage Digital, một công ty hạ tầng crypto.
Tuy nhiên, động thái này có thể cũng xuất phát từ lợi ích chính trị của Warren. Bà đã nhiều lần nhấn mạnh rằng Cục Bảo vệ Tài chính Người tiêu dùng (CFPB) – cơ quan liên bang mà bà giúp thành lập vào năm 2011 – là tổ chức duy nhất có nhiệm vụ bảo vệ người tiêu dùng khỏi bị "#debanking ".
Điều đáng chú ý là Trump đã đóng cửa CFPB đầu tuần này, và Warren dường như đang tận dụng cơ hội này để thúc đẩy việc khôi phục cơ quan này.
🗣 "Nếu tổng thống thực sự nghiêm túc về việc ngăn chặn debanking, thì ông ấy cần một CFPB mạnh mẽ để làm đối tác." – Warren nhấn mạnh.

⚖️ Crypto Đã Thực Sự Được Hỗ Trợ?
Trong phiên điều trần, các lãnh đạo crypto tỏ ra ngạc nhiên trước sự ủng hộ bất ngờ từ Warren.
📌 Bà thậm chí còn hỏi liệu các doanh nhân có ủng hộ quy định chặt chẽ hơn để ngăn các ngân hàng từ chối khách hàng hay không.
❗ Tuy nhiên, CEO Anchorage Digital đã thận trọng khi được yêu cầu nêu tên các ngân hàng đã từ chối cung cấp dịch vụ cho công ty ông.
💬 "Thượng nghị sĩ, tôi không nghĩ rằng việc nêu tên từng ngân hàng sẽ có ích. Tôi tin rằng chính các ngân hàng cũng là nạn nhân trong chuyện này." – McCauley trả lời.

💭 Crypto – Cuộc Chơi Chính Trị?
Động thái của Warren có thể phản ánh sự thay đổi trong cách tiếp cận với crypto khi chính quyền $TRUMP đang có xu hướng ủng hộ ngành này hơn.

💡 Liệu đây có phải là bước ngoặt mới giúp crypto nhận được sự công nhận từ hệ thống tài chính truyền thống? Hay chỉ là một nước đi chính trị? 🚀
#anhbacong

Federal Reserve Vice Chair for Supervision Michelle Bowman testified before Congress, stating that banking supervisors should not dictate which lawful businesses a bank can serve. This testimony marked a significant shift, validating years of industry complaints about systematic debanking.
To cement this change, the Fed is considering a formal rule to prevent its staff from influencing banks to close accounts based on a customer's lawful conduct or beliefs.
📜 The Regulatory Reversal
Bowman's statement is part of a broader policy shift throughout 2025 that dismantled the framework used to discourage crypto banking:
June 2025: The Fed ended the use of subjective "reputational risk" assessments to pressure banks on their client choices.March 2025: The FDIC rescinded a 2022 rule that required banks to get advance permission for crypto activities.Recent Actions: The Office of the Comptroller of the Currency (OCC) opened the door for banks to custody crypto and use blockchain networks.July 2025: The GENIUS Act was signed, creating a federal stablecoin framework and banning discriminatory banking against licensed issuers.
This reversal followed evidence, like FDIC "pause letters" from 2022, which showed regulators urging banks to halt crypto-related plans.
🚧 Permission vs. Capability
While the regulatory door is now open, walking through it is a major challenge. Regulators have set a high bar for compliance, requiring banks to develop deep expertise in managing crypto-specific risks.
A July 2025 joint statement from federal agencies outlined seven risk categories banks must master, from blockchain-focused anti-money laundering checks to smart contract risk assessment. Most traditional banks lack the specialized systems and knowledge needed to meet these demands.
⏳ The Irony of Timing
The crackdown on crypto banking had an unintended consequence: it gave fintech and crypto companies time to build a robust alternative financial system. Federal Reserve Vice Chair Bowman noted that nonbank institutions are taking significant market share.
Key developments highlight this shift:
Stablecoins processed an estimated $9 trillion in payments over the past year.Fintech firms are increasingly obtaining their own bank charters instead of relying on traditional partners.A Treasury advisory committee estimated that up to $6.6 trillion in deposits could move from banks to stablecoins if interest rewards continue.
🔮 What Comes Next
The path forward presents a compliance paradox: banks that move too slowly risk irrelevance, while those that move too fast risk penalties for inadequate controls. The coming years will test whether traditional banks can build the necessary capabilities before the digital asset market evolves beyond their reach.

#CryptoNews #debanking #FederalReserve #BankingCrisis
$BTC $SOL $XRP