A new report from the Cato Institute found most debanking cases in the United States stem from government pressure rather than bank policy.
Analyst Nicholas Anthony said debanking can be religious, operational or government-driven, with the latter now the dominant factor.
While media and political narratives often attribute these closures to discrimination, the majority of debanking cases stem from governmental pressure.
Nicholas Anthony said.
The report said officials have intervened directly or indirectly by instructing banks on how to manage accounts.
Anthony cited letters from the Federal Deposit Insurance Corporation ordering banks to halt crypto-related activity.
In practice, these letters were effectively termination orders.
Nicholas Anthony said.
Crypto firms have long argued that debanking is used to suppress the digital asset industry.
JPMorgan chief executive Jamie Dimon denied targeting customers over beliefs and said pressure came from both political parties.
Strike chief executive Jack Mallers and ShapeShift executive Houston Morgan reported unexplained account closures last year.
Anthony said Congress must reform the Bank Secrecy Act and end reputational risk regulation to curb debanking.
If Congress wants to bring relief, it’s time to eliminate the confidentiality that has shrouded the system.
Nicholas Anthony said.