The post US Government Pressure Identified as a Leading Cause of Debanking appeared on BitcoinEthereumNews.com.

The majority of debanking cases in the US are a result of government pressure, rather than individual banks’ policies, according to a new report from the American think tank the Cato Institute. Cato Institute analyst Nicholas Anthony explained in a report on Thursday that debanking could take several forms: religious or political, the idea that a financial institution closes accounts solely due to political or religious belief or affiliation; operational, when a bank chooses to close a customer’s account as it’s no longer in the bank’s interest; or government, when a government pressures a financial institution to close a customer’s account.  “While media and political narratives often attribute these closures to political or religious discrimination, this study finds that the majority of debanking cases stem from governmental pressure,” he said. Cato Institute analyst Nicholas Anthony said there are generally four types of debanking. Source: Cato Institute “Based on public evidence, governmental debanking appears to be the most significant issue majority of cases over time can be found where government officials have intervened in the market by either directly or indirectly telling banks how to run their business.” Crypto firms have been facing account closures and denials of banking services for years, and many in the industry have speculated these actions are part of a policy-driven effort to suppress the digital assets sector, particularly by the Biden administration. Two forms of government debanking Anthony said government debanking can take two forms: direct, when it uses a letter or court order to order an account closure, or indirect, when lawmakers use regulations and legislation to force an account closure. He cites the Federal Deposit Insurance Corporation sending letters to financial institutions ordering them to halt crypto-related activity as an example of direct action. Source: Cato Institute “Furthermore, the agency failed to provide…

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Filed under: News - @ January 12, 2026 6:27 am