According to Odaily, Democratic Senator Elizabeth Warren has called on U.S. President Donald Trump to collaborate with regulatory bodies to prevent the unwarranted closure of bank accounts belonging to citizens and businesses. Warren criticized attempts to undermine the Consumer Financial Protection Bureau (CFPB), warning that such actions could exacerbate the issue. In a letter to Trump, Warren urged the administration to support the CFPB's efforts in combating the trend of 'de-banking.'
The Trump administration recently appointed Scott Bessent, a cryptocurrency advocate, as the acting director of the CFPB following the dismissal of Director Rohit Chopra. Bessent has reportedly instructed CFPB staff to halt certain activities.
Warren's letter, sent ahead of a Senate Banking Committee hearing, highlighted bipartisan concerns and noted Trump's recent public criticism of American Bank CEO Brian Moynihan. At the World Economic Forum in Davos, Trump accused the bank of limiting business with certain clients and similarly criticized JPMorgan Chase CEO Jamie Dimon for allegedly discriminating against conservative customers.
In her February 4 letter, Warren acknowledged that banks sometimes have legitimate reasons and legal obligations to freeze or close accounts. However, she cautioned that banks might be executing these obligations in a hasty and overly broad manner to cut costs.
During the Senate committee hearing, Nathan McCauley, CEO of Anchorage Digital, testified about being a victim of de-banking. He refrained from naming the bank but stated that in 2023, the bank informed Anchorage of its decision to close the company's account due to concerns over Anchorage's cryptocurrency clients. McCauley expressed frustration over the lack of explanation and the difficulty in finding a new banking partner, having been rejected by approximately 40 banks nationwide. Many banks reportedly have blanket policies against servicing cryptocurrency clients.
A spokesperson for the Bank Policy Institute, representing the banking industry, stated in an email that banks must manage risks and comply with regulatory requirements, which may limit their ability to disclose reasons for account closures. The spokesperson emphasized that a key part of the solution is to reform the regulatory framework.