In a latest development, the Senate Banking Committee will hold a hearing today on “debanking,” where experts and business owners will testify about being unfairly denied banking products.
Lawmakers Question Banks Over Claims of Service Denials
On Wednesday, U.S. banks and regulators will face intense questioning as lawmakers investigate claims from conservatives and businesses that banks refuse services to certain industries or political groups.
Notably, The banking industry strongly denies claims that it refuses services for ideological reasons. Instead, it says that strict and unclear rules, along with banking oversight practices, make it hard to offer services or explain when they can’t. Wednesday’s hearing could reveal potential policy changes, including new rules or laws aimed at creating a national standard for offering banking services.
“This hearing is the beginning of the committee’s work to end this practice and will serve as an opportunity to hear directly from witnesses relating to their experience being debanked, which will in turn help shape solutions to address it – including holding regulators and financial institutions who exploit their power accountable,” remarked a spokesperson for Senator Tim Scott, the panel’s Republican chairman.
Key Witnesses At The Hearing
Witnesses at the hearing include the head of Anchorage Digital, a crypto platform that says it was debanked, and Old Glory Bank, founded in 2022 to address concerns about debanking by larger banks. Republican-led states have introduced laws to prevent what they see as discrimination by banks, and the inconsistency in these laws has caused frustration in the banking industry.
Notably, the dispute made headlines in January when President Trump accused Bank of America and JPMorgan Chase CEOs of denying services to some conservatives, echoing complaints about “woke capitalism.” The banks denied these claims, saying they don’t refuse services based on politics.
The industry is now pushing for clearer rules, including a national standard for fair access to financial services, clearer anti-money laundering laws that can force account closures, and simplified bank supervision to help businesses understand who they can serve.
