Sen. Elizabeth Warren of Massachusetts (D), an outspoken crypto-skeptic said on Wednesday that she wanted to work together with Senate Republicans, President Donald Trump, and other members to put an end to the practice. This markedly changed the tone in a Senate hearing that focused on accusations of major banks denying services to leaders in industry.
“Debanking is a real problem,” Warren, the leading Democrat in the Senate Banking Committee said at the hearing. “This shouldn’t be happening, and we need to figure out why, and who is responsible.”
Some in the industry of digital assets may be surprised by Warren’s assertiveness, as they have been viewing him as an enemy since years.
Warren has been accused by some crypto leaders including Coinbase CEO Brian Armstrong of instigating the attack. “Operation Chokepoint 2.0,” A rumored Biden initiative that secretly pushed banks not to serve clients with cryptographic interests.
And yet, Wednesday’s Senate Banking hearing saw the remarkable scene of Warren herself telling a panel of crypto industry witnesses handpicked by Republicans—who all claimed to have been debanked for years—that she was on their side.
“I don’t think for a second you should be locked out of our banking system,” Nathan McCauley was the CEO at Anchorage Digital. They provide crypto infrastructure.
Warren’s motives may be her own. In the hearing she hailed the Consumer Financial Protection Bureau – a federal watchdog that she founded in 2011 – as the sole government agency specifically tasked to protect consumers from debanking.
Trump acted this week to shut down the CFPB after years of Republican attacks.
“If the president is serious about stopping debanking, then he needs a strong CFPB as his partner to get this done,” Warren said.
Warren also attempted during Wednesday’s hearing to broaden the concept of groups being targeted by debanking—to nonprofits, the cannabis industry, ex-felons, and Muslim Americans.
Warren asked questions that enthusiastically sided with crypto leaders. As an example, Warren asked if entrepreneurs support stricter regulations that prevent banks from rejecting their customers.
Anchorage Digital’s CEO was a bit hesitant at one point when Warren asked to list the specific banks that refused him service due to his cryptocurrency association.
“Senator, I don’t believe it’s productive to name individual banks,” McCauley says. “I believe the banks were the victims here.”
Stacy Elliott is the editor.