Trump Accuses Biden Administration of Debanking Crypto Companies

United States President Donald Trump has accused the Biden administration of being responsible for the practice of debanking crypto companies. In a statement made from the Oval Office, Trump described the practice as "very bad and very dangerous," asserting that it was instigated by the Biden administration and continues to be a problem in the country.

Debanking refers to the alleged practice where banks deny services to customers based on their affiliation with certain industries, such as crypto, or their political choices. Leaders in the crypto industry have claimed that during the Biden administration, they were denied standard banking services. Conservative public figures, including Donald Trump and his family, have made similar allegations.

Trump shared his personal experience with debanking, stating that during the tenure of former US President Joe Biden, he was a victim of this practice due to his political beliefs. He suggested that the Biden administration's people were the major influence behind these decisions, noting that banks were always afraid of regulations. Trump clarified that he does not blame the big banks for such practices, but rather the federal agencies overseeing the industry.

“I’ve seen the biggest banker, I can tell you—you see him on television all the time. If a regulator walked into the room, he gets all nervous and crazy,” Trump said. “The regulators control the banks. It’s not the president of the bank. The president of the bank is far less important to a bank than a regulator, and a regulator can put that bank out of business.”

When asked about the possibility of signing an executive order to address debanking, Trump did not confirm any specific plans. However, he acknowledged that the problem of debanking persists in the United States. The Trump administration had previously planned to sign an executive order addressing the issue back in March, but the plan was shelved, at least temporarily.

Federal banking agencies under Trump's control have released documents that appear to confirm the existence of previous orders from the same regulators discouraging member banks from offering crypto services. These documents were released shortly before Senate lawmakers began a scheduled hearing on debanking. In one letter, an FDIC appointee mentioned that a bank’s board of directors had closed all the deposit accounts belonging to an entity with crypto affiliation. The letter also asked for additional information on the bank’s internal authorization to engage with up to three additional crypto firms.

Trump's criticism of the Biden administration's role in debanking highlights the ongoing tension between the crypto industry and traditional financial institutions. The potential for an executive order to address debanking could have significant implications for the crypto industry and its relationship with the banking sector. The issue of debanking has been a contentious one, with crypto industry leaders and conservative public figures alleging that they were routinely denied standard banking services during the Biden administration. Trump's comments come as federal banking agencies under his control have released documents that appear to confirm the existence of previous directives from regulators discouraging member banks from offering crypto services. However, direct evidence showing regulators instructing banks to refuse services to individuals in the crypto industry has not yet been published.