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Key Takeaways
- Elizabeth Warren is collaborating with Donald Trump to address crypto debanking issues.
- FDIC documents revealed crypto-related banking restrictions that predate the Trump administration.
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US Senator Elizabeth Warren has shifted her stance on crypto regulation.
During the hearings earlier today, she pledged to work with former President Donald Trump to tackle the issue of debanking in the crypto industry.
WARREN: “So debanking is a real problem, and we need to work across the aisle to solve it.”
This is like an arson bemoaning the sudden uptick in house fires.
Don’t be fooled.
It was Elizabeth Warren and her acolytes in the Biden admin who orchestrated the debanking scandal in… pic.twitter.com/2qcsgIaSqD
— Sam Lyman (@SamLyman33) February 5, 2025
Warren, previously known for her skepticism toward digital assets, is now focusing on investigations into banks that have denied services or closed accounts of crypto-related businesses and individuals. This practice, known as debanking, has been a significant concern for the crypto industry.
“Debanking is a real problem, and we need to work across the aisle to solve it,”, said Senator Warren.
The development comes amid revelations from newly disclosed Federal Deposit Insurance Corporation (FDIC) documents that indicate crypto-related restrictions were implemented during the previous administration.
The Senator’s involvement follows the shutdown of the Consumer Financial Protection Bureau (CFPB) under the Trump administration.
The CFPB, a federal agency established to protect consumers in the financial sector, had played a key role in overseeing banking practices and consumer protection measures.
The bipartisan approach to addressing crypto debanking marks a notable departure from Warren’s previous positions on digital assets, suggesting a potential shift in the regulatory landscape for crypto firms seeking banking services.
Warren’s collaboration does not come without controversy.
Senator Warren had criticized the SEC’s approval of spot bitcoin ETFs, emphasizing the need for crypto to adhere to anti-money laundering regulations.
When it comes to banking policy, I don’t usually agree with the CEOs of multi-billion dollar banks. But enforcing anti-money laundering rules against crypto to protect national security is common sense & critical. It’s time for Congress to act. pic.twitter.com/zZAegAjeb4
— Elizabeth Warren (@SenWarren) December 7, 2023
Recently, she called for investigations into former President Trump’s involvement in meme coins, specifically $TRUMP and $MELANIA. These developments have raised ethical concerns regarding potential conflicts of interest.
As both Warren and Trump navigate this complex landscape, industry observers are keenly watching for signs of shifting policies in Washington.
The formation of a new “crypto task force” within the SEC and Trump’s appointments of pro-crypto officials suggest that significant changes may be on the horizon.
Yesterday, Coinbase urged US bank regulators to clarify crypto banking rules to prevent the debanking of crypto firms and US regulators were alleged to have coordinated an effort to debank crypto firms, a tactic referred to as Operation Chokepoint 2.0.
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