During remarks at the World Economic Forum Thursday, President Donald Trump warned that debanking - whether done for political reasons or imposed by the former administration through regulation - must come to an end.
🚨 President Trump just took a wrecking ball to @BankofAmerica CEO Brian Moynihan at the World Economic Forum in Davos, telling him *to his face* to stop debanking conservatives: pic.twitter.com/CG87LLUCLw
— Will Hild (@WillHild) January 23, 2025
Now, House Banking Committee Chairman James Comer has launched an investigation into the practice, specifically focusing on the debanking of new crypto currency companies.
“Several tech leaders within the cryptocurrency space have been outspoken about their experience being debanked. In 2022, Uniswap Labs Founder and CEO Hayden Adams explained that his bank ‘closed my bank accounts with no notice or explanation,’ and that ‘I know many individuals and companies who have been similarly targeted simply for working in the crypto industry,’" Comer wrote in a letter to a number of tech entrepreneurs Friday.
"Coinbase Co-Founder and CEO Brian Armstrong confirmed thirty tech founders were debanked, stating then-Securities and Exchange Commission (SEC) Chair Gary Gensler, ‘tried to unlawfully kill our entire industry[.]’ Coinbase’s Chief Legal Officer, Paul Grewal, said, ‘[f]inancial regulators have used multiple tools at their disposal to try to cripple the digital-asset industry.'”
🚨 BREAKING 🚨
— Oversight Committee (@GOPoversight) January 24, 2025
Chairman James Comer Investigates Apparent Politically Motivated Debanking of Thirty Tech Founders, First Lady Melania Trump
Chairman Comer is investigating recent reports of financial institutions debanking lawful American businesses and individuals based on… pic.twitter.com/X7tZlsz3NK
“These examples are startling, and the Committee is investigating whether this debanking practice originates from the financial institutions themselves or from either implicit or explicit pressure from government regulators,” Comer continued. “The Committee is interested in engaging individuals who have been debanked and, specifically, how these actions hurt innovation, entrepreneurs, and workers. Further, to better inform the Committee’s investigation, the Committee seeks to understand the financial institutions and regulators involved, the reasons tech founders were given as to why they were debanked, and how this overreach affected business operations.”
The Senate Banking Committee is also getting in on the action and will hold a hearing investigating the issue on February 15.
“Debanking is un-American – every legal business deserves to be treated the same regardless of their political beliefs. Unfortunately, under Operation Chokepoint 2.0, Biden regulators abused their power and forced financial institutions to cut off services to digital asset firms, political figures, and conservative-aligned businesses and individuals. This is unacceptable. As Chairman of the Senate Banking Committee, I look forward to working with President Trump, industry leaders, and members of both parties to stop these abuses,” Chairman Tim Scott said Friday.
Bank of America and JP Morgan Chase strongly deny debanking occurs for political reasons.
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