US Government Pressure Identified as a Leading Cause of Debanking

A new report by Nicholas Anthony, an analyst at the Cato Institute, concludes that the majority of debanking cases in the US stem from governmental pressure rather than individual banks' policies or political/religious discrimination.

Anthony categorizes debanking into religious/political, operational, and government types, asserting that government intervention—either directly through orders or indirectly via regulations—is the most significant factor over time. This is particularly relevant to the crypto industry, which has faced service denials amid speculation of suppression efforts by the Biden administration.

To combat this, Anthony suggests Congress should reform the Bank Secrecy Act, repeal confidentiality laws, and end reputational risk regulation to reduce incentives for debanking and expose the extent of government pressure on financial institutions.

(Source：Cointelegraph)