Crypto Enters the Debanking Debate With a Weak Case
Banks need to be able to protect themselves from clients who pose risks that outweigh the value of their custom.
Crypto enthusiasts are co-opting the debanking debate for their own purposes. Don’t be fooled.
Photographer: Brett Carlsen/Bloomberg“Debanking” is about to get a lot of airtime in US politics, but be warned: This debate is a chimera. Crypto enthusiasts, culture warriors and banks all have dogs in the hunt, with each leaning on the others’ interests and narratives to advance their own.
At heart, the issue is about the bureaucracy built to prevent terrorist financing and money laundering versus the costs of getting it wrong – for banks that get fined billions for failings and for victims when terrible things happen. National security is the bright red line here, not political conspiracies about liberals seeking to hobble conservatives with secret sanctions.