A new report from the Cato Institute reveals that the majority of debanking cases in the US are due to governmental pressure, not individual bank policies. Different forms of debanking include religious, political, operational, and government-related closures. Crypto firms have faced account closures for years, sparking speculation that these actions are part of a policy-driven effort to suppress the digital assets sector.

Government debanking can be direct, through letters or court orders, or indirect, through regulations and legislation. The Federal Deposit Insurance Corporation has sent letters to financial institutions ordering them to halt crypto-related activities. JPMorgan CEO Jamie Dimon denied debanking based on political or religious affiliation, claiming both parties lean on banks to debank individuals.

The Trump administration has addressed alleged debanking through executive orders and appointing pro-crypto leaders to agencies like the SEC. However, Cato Institute analyst Nicholas Anthony argues that Congress must take more action by reforming the Bank Secrecy Act, repealing confidentiality laws, and ending reputational risk regulation to reduce incentives to debank and expose the extent of the issue.

Read more at Cointelegraph: US Government Pressure Identified as a Leading Cause of Debanking