{"id":18042,"date":"2024-12-10T09:03:02","date_gmt":"2024-12-10T10:03:02","guid":{"rendered":"https:\/\/medexperts.pro\/?p=18042"},"modified":"2024-12-10T10:23:23","modified_gmt":"2024-12-10T10:23:23","slug":"how-crypto-insiders-turned-debanking-into-a-political-storm","status":"publish","type":"post","link":"https:\/\/medexperts.pro\/?p=18042","title":{"rendered":"How Crypto Insiders Turned \u2018Debanking\u2019 Into a Political Storm"},"content":{"rendered":"
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Concerns that crypto companies are being purposely cut off from the global banking system have become a political cudgel at an opportune moment for the industry.<\/p>\n

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Early last year, Ryne Saxe started fielding demands from banks that worked with his San Francisco-based start-up, Eco. They laid out a litany of new compliance and reporting requirements that Eco had to follow.<\/p>\n

The problem? Eco was a cryptocurrency company, part of an industry facing heavy scrutiny from regulators. The banks said they were under pressure from government agencies to follow new guidance about crypto clients. Then Bill.com, Eco\u2019s payroll provider, canceled the company\u2019s account, citing a new policy, Mr. Saxe said.<\/p>\n

After eight months of pressure, Mr. Saxe shut down Eco\u2019s app and changed his business plan so that it did not rely on partnerships with banks. Eventually his Bill.com account was restored.<\/p>\n

\u201cIt was like hell,\u201d he said. \u201cWe were getting progressively debanked.\u201d<\/p>\n

For years, crypto start-ups like Eco have struggled to find and keep bank accounts in the United States, leading entrepreneurs to cry foul. In angry social media posts, they have accused the government of orchestrating a campaign to squelch the crypto industry, calling the crackdown unconstitutional and un-American. They have sued banking regulators<\/a> and raised the issue with members of Congress.<\/p>\n<\/div>\n<\/div>\n

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Those concerns have reached a boiling point. Last month, Marc Andreessen, an influential venture capitalist, appeared<\/a> on Joe Rogan\u2019s podcast, which reaches more than 10 million<\/a> listeners, and accused Democrats of \u201cterrorizing\u201d crypto start-ups by pressing banks not to work with them. His complaints were amplified<\/a> by Elon Musk, as well as crypto executives like Brian Armstrong<\/a>, the Coinbase C.E.O., and Tyler Winklevoss, who said the government and the banking sector were engaged in \u201cevil behavior.\u201d<\/a><\/p>\n<\/div>\n<\/div>\n

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Brian Armstrong, the chief executive of Coinbase, has been vocal about the issue of debanking.<\/span>Jason Henry for The New York Times<\/span><\/span><\/span><\/figcaption><\/figure>\n<\/div>\n<\/div>\n
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Concerns that crypto companies are being purposely cut off from the global banking system have become a political cudgel at an opportune moment for the industry.Early last year, Ryne Saxe started fielding demands from banks that worked with his San Francisco-based start-up, Eco. They laid out a litany of new compliance and reporting requirements that Eco had to follow.The problem? Eco was a cryptocurrency company, part of an industry facing heavy scrutiny from regulators. The banks said they were under pressure from government agencies to follow new guidance about crypto clients. Then Bill.com, Eco\u2019s payroll provider, canceled the company\u2019s account, citing a new policy, Mr. Saxe said.After eight months of pressure, Mr. Saxe shut down Eco\u2019s app and changed his business plan so that it did not rely on partnerships with banks. Eventually his Bill.com account was restored.\u201cIt was like hell,\u201d he said. \u201cWe were getting progressively debanked.\u201dFor years, crypto start-ups like Eco have struggled to find and keep bank accounts in the United States, leading entrepreneurs to cry foul. In angry social media posts, they have accused the government of orchestrating a campaign to squelch the crypto industry, calling the crackdown unconstitutional and un-American. They have sued banking regulators and raised the issue with members of Congress.Those concerns have reached a boiling point. Last month, Marc Andreessen, an influential venture capitalist, appeared on Joe Rogan\u2019s podcast, which reaches more than 10 million listeners, and accused Democrats of \u201cterrorizing\u201d crypto start-ups by pressing banks not to work with them. His complaints were amplified by Elon Musk, as well as crypto executives like Brian Armstrong, the Coinbase C.E.O., and Tyler Winklevoss, who said the government and the banking sector were engaged in \u201cevil behavior.\u201dBrian Armstrong, the chief executive of Coinbase, has been vocal about the issue of debanking.Jason Henry for The New York TimesWe are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and\u00a0log into\u00a0your Times account, or\u00a0subscribe\u00a0for all of The Times.Thank you for your patience while we verify access.Already a subscriber?\u00a0Log in.Want all of The Times?\u00a0Subscribe.<\/p>\n","protected":false},"author":1,"featured_media":18044,"comment_status":"close","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":["post-18042","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology"],"_links":{"self":[{"href":"https:\/\/medexperts.pro\/index.php?rest_route=\/wp\/v2\/posts\/18042","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/medexperts.pro\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/medexperts.pro\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/medexperts.pro\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/medexperts.pro\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=18042"}],"version-history":[{"count":2,"href":"https:\/\/medexperts.pro\/index.php?rest_route=\/wp\/v2\/posts\/18042\/revisions"}],"predecessor-version":[{"id":18045,"href":"https:\/\/medexperts.pro\/index.php?rest_route=\/wp\/v2\/posts\/18042\/revisions\/18045"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/medexperts.pro\/index.php?rest_route=\/wp\/v2\/media\/18044"}],"wp:attachment":[{"href":"https:\/\/medexperts.pro\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=18042"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/medexperts.pro\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=18042"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/medexperts.pro\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=18042"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}