Anchorage Digital CEO Warns of Crypto Banking Crackdown at U.S. Senate Hearing

2 mins mins

Key Points:

Anchorage Digital was denied banking services, causing 20% layoffs and significant losses.
Between 2021-2023, U.S. regulators pressured banks to cut ties with the crypto industry, making it harder for crypto firms to access banking services.
CEO McCauley urges Congress to ensure fair access to cryptocurrency banking, suggesting repealing a 2023 policy limiting services to crypto companies.

Anchorage Digital CEO Nathan McCauley testified at the U.S. Senate’s “Debanking” hearing, revealing that despite being a federally licensed crypto bank, Anchorage Digital faced banking service denials, leading to financial losses and a 20% workforce reduction.

Anchorage Digital CEO Reveals Crypto Banking Struggles

McCauley highlighted that between 2021 and 2023, U.S. regulators, including the OCC, FDIC, SEC, and Federal Reserve, pressured banks to distance themselves from the crypto banking industry. This regulatory stance created a chilling effect, making financial institutions reluctant to engage with crypto businesses. As a result, many firms struggled to secure essential cryptocurrency banking services, with some even forced to shut down.

The Anchorage CEO urged Congress to take action by legislating fair access to cryptocurrency banking services for the crypto industry. He also called for the repeal of the January 2023 joint statement by banking regulators, arguing that it has severely restricted banks’ ability to serve crypto firms.

McCauley Urges Congress to Protect Crypto Banking Access

McCauley’s testimony underscores growing concerns about regulatory overreach and its impact on crypto banking innovation. With major banks shying away from crypto partnerships, the industry faces mounting hurdles that could stifle growth and drive businesses offshore. His appeal to lawmakers signals an urgent need for clarity and fair treatment in crypto banking regulations.

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