Crypto and Trump gang up on FDIC over debanking: ‘Our story is pretty ridiculous’

Crypto industry leaders have been testifying on Capitol Hill about the industry’s struggle with debanking during the Biden administration.

After years of regulatory challenges, crypto execs now have allies across Washington, D.C.

“We had a bank that we had a growing relationship with for a number of years, who basically on a dime, decided to turn off our bank account,” Nathan McCauley, CEO of Anchorage Digital, told lawmakers this month.

EXCERPT

Anchorage Digital CEO Nathan McCauley wants everyone to know what happened to his crypto company in 2023 during the Biden administration.

“Our story is pretty ridiculous,” McCauley told CNBC in an interview after testifying at a Senate hearing, titled, “Investigating the Real Impacts of Debanking in America,” earlier this month. “We had a bank that we had a growing relationship with for a number of years, who basically on a dime, decided to turn off our bank account.”

No explanation. No warning. After two years working with the bank, access was cut off. He didn’t name the bank and an Anchorage spokesperson said the company is declining to provide it.

McCauley’s peers across the crypto industry have shared similar sagas about being locked out of the U.S. financial system, losing access to payroll, checking accounts and payment processing. Industry leaders call it “Operation Choke Point 2.0,” an alleged coordinated effort by regulators during the Biden presidency to pressure banks into severing ties with crypto. The 1.0 version, they say, occurred when the Obama administration went after banks that backed gun manufacturers and payday lenders.

With the word “debanking,” crypto execs and investors have found immediate allies among top Republicans in both houses of Congress and in the White House, who are ready and willing to investigate any potential malfeasance that occurred when Democrats were in charge.

https://www.cnbc.com/2025/02/15/crypto-trump-gop-leadershipo-gang-up-on-fdic-over-debanking-.html?__source=androidappshare