South Carolina senator Tim Scott, head of the US Senate banking committee, is planning to introduce a bill on March 6 to terminate regulation of administration of customer reputation risks to banks, which provides a way for a discrimination skill known as “debanking,” According to In a report from the Wall Street Journal.
Debanking is a skill in which banks can choose not to do business with clients that indicate “reputation risks.” The Federal Reserve specified The risk of reputation as “the potential negative publicity about the business skills of an institution, whether true or not, will cause a fall to the customer’s base, expensive litigation, or income reductions.”
At least 11 Republican lawmakers are Scott’s co-sponsoring bill, while various banking industry groups are planning to endorse it, the Wall Street Journal said. These groups include Institute of Bank PolicyWhich one labels itself as a nonpartisan group that represents the country’s leading banks. JPMorgan ChaseThe largest bank in the United States, said it also supports the bill.
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Debanking is said to have been affecting companies in some industries over the past two decades, including firearms, federal prison contractors, cannabis and cryptocurrency industries. Skill has been a hot topic for the past four years, with cryptocurrency advocates saying that a campaign is that -kestra To –debank legitimate crypto companies in the United States.
Related: Custodia Bank CEO calls Washington’s Debanking ‘Skullduggery’
Senator Kevin Cramer and John Kennedy announced In February 2025 the introduction of a similar bill aimed at protecting the fair access to financial services and ensuring that banks act in “a safe and orderly way.” In a display of Bipartisanship, the progressive American Civil Liberties Union promoted Against the practice of Deban.
Crypto debanking and “Operation Chokepoint 2.0”
In November 2024, Marc Andreessen, co-founder of Andreessen Horowitz, claimed more than 30 technologies and founders of Crypto has declined access to banking services In the US, the lighting of the fire under the debate surrounding the so -called “Operation Chokepoint 2.0” which is the Biden Administration’s co -worker.
In February 2025, the new in-power GOP held congressional hearings regarding the issuerevealing tensions on the party lines but a surprising agreement that Deban should be made. Even outside of resources that have been contacted by cointelegraph, not sure if the “Operation Chokepoint 2.0” is a real issue or “rhetoric red meat for the base of the GOP.”
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While Senator Elizabeth Warren Digital asset companies are not specifically mentioned At a hearing in Congress about Deban on February 5, he said that “if banks adopt policies that people regularly argue with based on their beliefs or other illegal reasons – that’s wrong, it needs to be stopped.”
Speaking to the Ethdenver in February. Nothing has changed in US Crypto Banking Under the Trump administration. “(The) Understanding has a Logiening; none of the federal banking agencies actually retracted any anti -crypto guidance.”
Magazine: Crypto adventures of Trump’s crypto raises conflict of interest, insider trading questions
