Ending the Debanking Threat: A Call to Action

The practice of debanking has become a contentious issue in Washington, with crypto companies and other businesses being cut off from banking services due to alleged pressure from federal regulators. This phenomenon, dubbed "Operation Chokepoint 2.0," has sparked heated debate and multiple congressional investigations. As the CEO of a federally regulated bank that has experienced debanking firsthand, I am testifying before Congress to shed light on this issue and advocate for a solution. Debanking occurs when regulators use a shadowy and unaccountable process to warn banks against serving certain types of customers, not based on individual risk, but on hostility towards an entire industry. This can have devastating consequences for law-abiding individuals and businesses, cutting them off from basic banking services. My company, Anchorage Digital, experienced this when our bank abruptly closed our account due to discomfort with our crypto clients' transactions, despite our rigorous compliance process. The irony is that we are a federally chartered bank, regulated and supervised by the OCC, and subject to the same stringent expectations as any other national bank. Yet, we were still cut off without explanation or recourse. This has had a significant impact on our business and clients, and has contributed to the disruption of our industry as a whole. To address this issue, we need to understand what happened and take steps to prevent it from happening again. This includes congressional oversight, legislation to establish real safeguards, and the establishment of clear rules and procedures for banks to follow. We must also ensure that regulators are held accountable for their actions and that there are protections in place to prevent the abuse of authority. By taking these steps, we can protect American innovation, ensure democratic accountability, and prevent the misuse of regulatory power.