Senate Banking Committee Ranking Member Elizabeth Warren expressed her belief that it was inappropriate for banks to deny services to Anchorage Digital CEO Nathan McCauley and other participants in the cryptocurrency industry. Warren made these remarks during a hearing on February 5.
"Debanking is a real problem, and we need to work across the aisle to solve it," said Warren. "I don't think for a second that you should be locked out of our banking system. In many cases, it is wrong for banks to close accounts and threaten your ability to make payroll or pay rent on time without even providing an explanation, so long as you are following the law."
According to McCauley's testimony at the hearing, Anchorage, a federally chartered and regulated bank serving clients in the crypto industry, was informed by its bank in 2023 that its account would be closed within 30 days. McCauley said that the bank cited discomfort with "our crypto clients’ transactions" as the reason for closing the account but refused to provide further details or allow an appeal. Following this decision, Anchorage faced rejection from over 40 other banks.
McCauley argued that regulators' actions pressuring banks to sever ties with individuals and firms involved in digital assets effectively created a "de facto ban on crypto by choking it off from the federal banking system," which he said is essential for any industry's survival. During the Q&A session of the hearing, McCauley highlighted that debanking has become prevalent within the industry. He recounted an event in San Francisco with around 100 "crypto founders," where all attendees indicated they had experienced debanking or difficulties obtaining bank accounts.
Brady Dale reported in the Axios Crypto newsletter that Warren's comments to McCauley were unexpected, given her previous stance as a "crypto critic." The newsletter noted that Warren concentrated her remarks on debanking as an issue of financial inclusion rather than criticizing the crypto industry's concerns.
Warren's background includes over 30 years as a law professor before she became Massachusetts' first female U.S. Senator in 2012, according to her website.
