Comer investigating crypto 'debanking'

House Oversight and Accountability Committee Chair James Comer (R-Ky.) said Friday he is investigating the alleged “debanking” of cryptocurrency firms, reaching out to venture capitalist Marc Andreessen and five crypto CEOs who have publicly raised concerns. 

Debanking has become a flash point in the crypto space since Andreessen claimed on “The Joe Rogan Experience” in November that he knew 30 tech founders who had been the target of debanking — the closure of bank accounts that financial institutions consider risky, often with little or no notice.  

Comer sent a letter to Andreessen, Coinbase CEO Brian Armstrong, Blockchain Association CEO Kristin Smith, Uniswap Labs CEO Hayden Adams, Lightspark CEO David Marcus and Payward CEO Dave Ripley, asking about their experiences with debanking. 

“The Committee seeks to understand whether this pattern of debanking stems from financial institutions themselves or from government actors,” Comer wrote. 

“The Committee seeks to ensure that entrepreneurs are not unfairly targeted and, by extension, that all Americans are able to participate in U.S. markets without fear of retaliation through illicit measures undertaken by financial institutions or federal regulators,” he continued. 

Adams revealed in 2022 that JPMorgan Chase had closed his bank accounts with “no notice or explanation.” His company created the decentralized crypto exchange Uniswap. 

“I know many individuals and companies who have been similarly targeted simply for working in the crypto industry,” he said in a post on the social platform X at the time. “Thanks for making it a personal.” 

Marcus detailed a similar experience last April, saying the financial operations platform BILL informed his Bitcoin startup Lightspark that it could no longer service them due to its processing bank's requirements and closed their account. 

Coinbase’s chief legal officer, Paul Grewal, also alleged last June that the Federal Deposit Insurance Corporation (FDIC) had “pressured financial institutions to cut off the industry from the banking system.” 

Debanking is receiving renewed attention after President Trump accused Bank of America and other financial institutions on Thursday of refusing to do business with conservatives — long an area of concern on the right. 

“I hope you start opening your bank to conservatives, because many conservatives complain that the banks are not allowing them to do business within the bank, and that included a place called Bank of America,” Trump said to Bank of America CEO Brian Moynihan while taking questions from business leaders after his virtual address at the World Economic Forum.  

“They don’t take conservative business,” the president continued. “And I don’t know if the regulators mandated that because of Biden or what. But you and [JPMorgan Chase CEO] Jamie [Dimon] and everybody, I hope you’re going to open your banks to conservatives, because what you’re doing is wrong.” 

Dimon found himself in Trump’s crosshairs after weighing in on the debanking discussion earlier this week. He acknowledged that JPMorgan Chase does sometimes close accounts for people or organizations, but emphasized that it is not for political or religious reasons. 

Instead, Dimon insisted the bank simply is trying to follow federal law. 

“There should be far cleaner lines about what we have to do, and we don’t have to do,” he added on the bank’s “The Unshakeables” podcast. “We’ve been complaining about this for years. We need to fix it.” 

Crypto-related issues have taken a front-row seat in the new Trump administration, after the president embraced the industry during his 2024 campaign.  

In a new executive order Thursday, Trump established a digital assets working group led by David Sacks, the White House czar for artificial intelligence and crypto. The group is tasked with proposing a federal regulatory framework for digital assets, as well as considering whether to create a national digital asset stockpile.   

The president has also nominated pro-crypto candidates to key positions in his administration, tapping Paul Atkins for Securities and Exchange Commission (SEC) chair and Howard Lutnick to lead the Commerce Department.  

In response to Comer’s letter Friday, Smith, the Blockchain Association’s CEO, said they are “grateful to assist in the thorough investigation of this pernicious practice.” 

“Lawful crypto organizations and individuals need bank accounts to pay rent, pay taxes, and pay employees — denying them these basic financial services is wrong and should never happen in the United States of America,” Smith said in a statement. “We’re eager to get to the bottom of this and end this unlawful practice once and for all.” 

The crypto exchange Kraken, which is owned by Payward, also commended Comer for investigating debanking. 

“The weaponization of the financial system to defund, debank, or discredit crypto companies is un-American,” said Jonathan Jachym, global head of policy at Kraken. 

Senate Banking Committee Chair Tim Scott (R-S.C.) separately announced Friday that the panel will hold a hearing on debanking in February.