Senate hearing will probe crypto debanking claims under Trump deregulation push

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The Senate Banking Committee, chaired by Senator Tim Scott, will convene a highly anticipated hearing on February 5, 2025, to address the contentious issue of debanking.

The hearing comes amid accusations that financial regulators have unfairly targeted crypto firms, political figures, and conservative-aligned businesses by pressuring banks to sever ties.

In a statement, Chairman Scott called debanking practices “un-American,” emphasising that “every legal business deserves to be treated the same regardless of their political beliefs.”

Scott criticised what has been dubbed “Operation Chokepoint 2.0,” an alleged continuation of a prior initiative under the Obama administration that restricted banking access for industries deemed high-risk.

He pledged to work with President Trump and members of both parties to end such practices.

The hearing also aligns with recent developments at the Federal Deposit Insurance Corporation (FDIC).

Vice Chairman Travis Hill has voiced criticism of the agency’s previous use of “pause letters,” which effectively barred banks from offering crypto-related services pending regulatory reviews.

Hill vowed to implement clearer guidelines for emerging technologies and eliminate discriminatory practices.

The crypto industry, which has long alleged regulatory overreach, is hopeful for change under the Trump administration’s deregulatory agenda.

Figures like Coinbase’s Chief Legal Officer Paul Grewal have called for greater transparency, arguing that past actions stifled innovation and unfairly targeted lawful businesses.

Witnesses for the hearing will be announced in the coming weeks.