Comer investigating crypto 'debanking'

House Oversight and Accountability Committee Chair James Comer (R-Ky.) said Friday he is investigating the alleged “debanking” of cryptocurrency firms, reaching out to venture capitalist Marc Andreessen and five crypto CEOs who have publicly raised concerns.

Debanking has become a flash point in the crypto space since Andreessen claimed on “The Joe Rogan Experience” in November that he knew 30 tech founders who had been the target of debanking — the closure of bank accounts that financial institutions consider risky, often with little or no notice.

Comer sent a letter to Andreessen, Coinbase CEO Brian Armstrong, Blockchain Association CEO Kristin Smith, Uniswap Labs CEO Hayden Adams, Lightspark CEO David Marcus and Payward CEO Dave Ripley, asking about their experiences with debanking.

“The Committee seeks to understand whether this pattern of debanking stems from financial institutions themselves or from government actors,” Comer wrote.

“The Committee seeks to ensure that entrepreneurs are not unfairly targeted and, by extension, that all Americans are able to participate in U.S. markets without fear of retaliation through illicit measures undertaken by financial institutions or federal regulators,” he continued.

Adams revealed in 2022 that JPMorgan Chase had closed his bank accounts with “no notice or explanation.” His company created the decentralized crypto exchange Uniswap.

“I know many individuals and companies who have been similarly targeted simply for working in the crypto industry,” he said in a post on the social platform X at the time. “Thanks for making it a personal.”

Marcus detailed a similar experience last April, saying the financial operations platform BILL informed his Bitcoin startup Lightspark that it could no longer service them due to its processing bank's requirements and closed their account.

Coinbase’s chief legal officer, Paul Grewal, also alleged last June that the Federal Deposit Insurance Corporation (FDIC) had “pressured financial institutions to cut off the industry from the banking system.”

Debanking is receiving renewed attention after President Trump accused Bank of America and other financial institutions on Thursday of refusing to do business with conservatives — long an area of concern on the right.

“I hope you start opening your bank to conservatives, because many conservatives complain that the banks are not allowing them to do business within the bank, and that included a place called Bank of America,” Trump said to Bank of America CEO Brian Moynihan while taking questions from business leaders after his virtual address at the World Economic Forum.

“They don’t take conservative business,” the president continued. “And I don’t know if the regulators mandated that because of Biden or what. But you and [JPMorgan Chase CEO] Jamie [Dimon] and everybody, I hope you’re going to open your banks to conservatives, because what you’re doing is wrong.”

Dimon found himself in Trump’s crosshairs after weighing in on the debanking discussion earlier this week. He acknowledged that JPMorgan Chase does sometimes close accounts for people or organizations, but emphasized that it is not for political or religious reasons.

Instead, Dimon insisted the bank simply is trying to follow federal law.

“There should be far cleaner lines about what we have to do, and we don’t have to do,” he added on the bank’s “The Unshakeables” podcast. “We’ve been complaining about this for years. We need to fix it.”

Crypto-related issues have taken a front-row seat in the new Trump administration, after the president embraced the industry during his 2024 campaign.

In a new executive order Thursday, Trump established a digital assets working group led by David Sacks, the White House czar for artificial intelligence and crypto. The group is tasked with proposing a federal regulatory framework for digital assets, as well as considering whether to create a national digital asset stockpile.

The president has also nominated pro-crypto candidates to key positions in his administration, tapping Paul Atkins for Securities and Exchange Commission (SEC) chair and Howard Lutnick to lead the Commerce Department.

In response to Comer’s letter Friday, Smith, the Blockchain Association’s CEO, said they are “grateful to assist in the thorough investigation of this pernicious practice.”

“Lawful crypto organizations and individuals need bank accounts to pay rent, pay taxes, and pay employees — denying them these basic financial services is wrong and should never happen in the United States of America,” Smith said in a statement. “We’re eager to get to the bottom of this and end this unlawful practice once and for all.”

The crypto exchange Kraken, which is owned by Payward, also commended Comer for investigating debanking.

“The weaponization of the financial system to defund, debank, or discredit crypto companies is un-American,” said Jonathan Jachym, global head of policy at Kraken.

Senate Banking Committee Chair Tim Scott (R-S.C.) separately announced Friday that the panel will hold a hearing on debanking in February.

Topics

‘Debanking,’ and the Trump Diss Heard Around Davos

President Trump’s accusation that Bank of America’ dropped conservatives as clients serves as a reminder C.E.O.s may face unexpected attacks by the White House.
The New York Times - 11h
French Crypto Entrepreneur and Wife Are Freed After Kidnapping

David Balland, a founder of Ledger, a prominent cryptocurrency company, and his wife were freed after a 48-hour police search. Ten people have been arrested.
The New York Times - 23h
Crypto executive freed after kidnap in France

Assailants demanded large ransom after abduction of Ledger co-founder David Balland
Financial Times - 1d
Oversight Democrats seek to flip script on Comer on ethics bill

House Oversight Democrats hoping to highlight potential conflicts of interest under President Trump see leverage in a past ethics bill from Chair James Comer (R-Ky.). That proposal, which Comer ...
The Hill - 1d
Nashville school shooting investigation underway

At least one student was killed on Wednesday in a shooting at Antioch High School in Nashville, Tennessee. Senior coordinating producer for CBS News' crime and public safety unit Anna Schecter ...
CBS News - 2d
Trump's crypto reckoning

Welcome to The Hill's Technology newsletter {beacon} Technology Technology The Big Story Trump meme coin sparks crypto world backlash President Trump is facing backlash after he and first lady ...
The Hill - 2d
Trump faces crypto world backlash after launch of meme coin

President Trump is facing backlash after he and first lady Melania Trump launched two cryptocurrency tokens just days before his inauguration. While the move sparked predictable criticism from ...
The Hill - 2d
Crypto executives fear investor backlash over Trump memecoins

Industry trying to rebuild its reputation frets over potential conflicts of interest and investor losses
Financial Times - 2d
Trump's embrace of meme coin sours mood in crypto industry

President Donald Trump’s goodwill in the cryptocurrency industry has taken a hit after he and his wife launched meme coins — a move critics say looks like an unseemly cash grab that undermines an ...
ABC News - 2d
SEC launches 'crypto task force'

The Securities and Exchange Commission (SEC) is launching “a crypto task force.” In a Tuesday press release, the SEC described the task force as “dedicated to developing a comprehensive and clear ...
The Hill - 3d
Trump's SEC launching 'crypto task force' to develop clear regulations for industry

The Trump administration took its first steps Tuesday toward an expected lowering of regulatory barriers for cryptocurrency.
CNBC - 3d
Donald and Melania Trump crypto tokens plummet

The cryptocurrencies were launched last week.
ABC News - 3d
Trump-backed crypto venture to extend token sales after raising $1bn

Entrepreneur Justin Sun among investors buying into World Liberty Financial
Financial Times - 4d
Trump 2.0 Means State Crypto Rules Could Change

The president’s enthusiasm for the virtual currency could prompt states to start making crypto investments through their public pension funds.
Inc. - 4d
Trump Will Take Office as a Crypto Billionaire

The Trump family’s new crypto tokens, which went on sale over the weekend, have soared in value — along with crypto markets in general.
The New York Times - 4d
Melania Trump launches meme coin as crypto rallies on Donald’s return

President-elect’s $Trump coin more than halved in value before steadily recovering on Sunday. Business live – latest updates The incoming US first lady, Melania Trump, has followed her ...
The Guardian - 4d
Crypto Industry Celebrates Trump Inauguration

The crypto gala marks a reversal on Biden’s policies.
Inc. - 4d
'End woke' and 'boost crypto' - Trump fans' day one wishlist

Trump's biggest supporters tell the BBC what issues they're excited to see the new president tackle first.
BBC News - 5d
Trump-backed memecoin value tops $13bn as crypto industry hopes rise

Incoming president launched token on Friday after a Washington gala for crypto executives and politicians
Financial Times - 5d
Price of new Trump crypto meme coin soars ahead of inauguration

Asset triples in price from $20 per token to more than $70, with at least $24bn in trading as of Sunday morning. Donald Trump has launched a cryptocurrency “meme coin” ahead of his inauguration for ...
The Guardian - 5d
Crypto in your pension? It’s not going to help.

U.S. state and local pension funds are looking at speculating on cryptocurrencies to solve their funding crisis.
MarketWatch - 6d
Bitcoin gains as Trump reportedly plans crypto executive order

Bitcoin rejoined the crypto rally amid reports that President-elect Donald Trump could release an executive order on crypto as soon as day 1.
CNBC - 6d
Swissquote Expects Results To Beat Views on Crypto Demand

The online bank said its results for 2024 should exceed market expectations as it was boosted by cryptocurrency trading.
The Wall Street Journal - Jan. 17
They Went After the Hawk Tuah Crypto Promoters. Now They're Suing Pump.Fun

The same lawyers handling a lawsuit over the infamous Hawk Tuah crypto coin are bringing a new class action against memecoin platform Pump.Fun for allegedly putting investors in high financial risk.
Wired - Jan. 17
Trump and bitcoin: BlackRock predicts another historic year for crypto

BlackRock ETF investment chief Samara Cohen thinks President-elect Donald Trump will push crypto-friendly policies.
CNBC - Jan. 16
Small-cap crypto rallies ahead of Trump inauguration, bitcoin trades at $100,000

Cryptocurrencies jumped as investor appetite shifted to smaller, higher risk coins ahead of President-elect Donald Trump's inauguration.
CNBC - Jan. 16
Comer reintroduces measure requiring return of federal workers to offices

Rep. James Comer (R-Ky.) on Thursday reintroduced his measure requiring federal workers to return to the office, ending pandemic-era norms that allowed them to work remotely. Comer, the House ...
The Hill - Jan. 16
The First Bitcoin President? Tracing Trump’s Crypto Connections

Crypto execs funneled millions in donations to swing this election, and now their man is in charge. Here’s how Donald Trump’s “crypto cabinet” could shape the next four years.
Wired - Jan. 16
The criminal question in the coming wave of pro-crypto legislation

The Trump administration and Congress are expected to act quickly on pro-crypto bills, and likely without much focus on cybercrime prevention.
CNBC - Jan. 13
FBI head Wray on Trump investigations

FBI Director Christopher Wray talks to correspondent Scott Pelley about Trump investigations.
CBS News - Jan. 12
US regulator plans to toughen customer protection on crypto accounts

CFPB proposes to put digital wallets under same standard as bank accounts
Financial Times - Jan. 10
Crypto, Roaring Kitty and 'fartcoin': Market speculation picks up to start 2025

Many speculative pockets of the stock market surged in early trading Thursday, the first session of the new year.
CNBC - Jan. 2
Mogul Do Kwon Pleads Not Guilty in Crypto Suit

Terraform Labs founder Kwon entered the plea in Manhattan federal court.
Inc. - Jan. 2
Crypto Industry Anticipates Trump Executive Orders Day 1

Cryptocurrency could see a slew of policy positions when Trump takes office.
Inc. - Jan. 2
Crypto mogul Do Kwon pleads not guilty in first US court appearance

South Korean cryptocurrency mogul Do Kwon has pleaded not guilty to a freshly unsealed indictment released in time for his first U.S. court appearance
ABC News - Jan. 2
Will crypto continue to rally? Trump’s first 100 days will be the key.

For crypto’s bull run to continue, digital assets enthusiasts hope for a more friendly regulatory environment under the second Donald Trump administration and a favorable macroeconomic setup to ...
MarketWatch - Jan. 2
Crypto industry dreams of a golden era under Trump

The sector expects lighter regulation and wider adoption under the president-elect, but some worry about systemic risks
Financial Times - Jan. 2
12 Trends Predictions in 2025: Hillary Clinton, Crypto and More

What will we wear, eat, buy, believe, desire?
The New York Times - Dec. 30

More in Politics

Jan. 6 prosecutors describe 'shocking,' 'guttural' week after Trump's pardons

WASHINGTON — Federal prosecutors in the now-disbanded Capitol Siege Section of the D.C. U.S. attorney's office spent much of the last four years prosecuting cases against Jan. 6 rioters.
NBC News - 35m
Secretary of State Marco Rubio orders halt to almost all U.S. foreign aid

The directive follows President Donald Trump’s executive order Monday pausing new obligations and disbursements of foreign aid pending review.
NBC News - 42m
Trump signs actions curtailing federal funding for abortion

President Trump on Friday took a pair of actions to limit U.S. government funding for abortions, reversing some of the Biden administration's efforts to increase access to the procedure. Trump ...
The Hill - 44m
In hurricane-ravaged North Carolina, Trump suggests that FEMA should be overhauled or shut down

On a visit to a North Carolina neighborhood destroyed by Hurricane Helene, President Trump was highly critical of FEMA, suggesting it should be shut down. Trump arrived late Friday in Los Angeles ...
NBC News - 1h
Another Jan. 6 rioter rejects Trump's pardon: 'I did those things'

Another Jan. 6 rioter has rejected President Trump’s pardon, saying that he “did those things” and his actions do not merit forgiveness. “It's almost like he was trying to say it didn't happen. ...
The Hill - 1h