Until last week, the issue of de-banking remained largely an open secret, something known primarily to insiders like myself. As I work to protect people and entities affected by de-banking both in the U.S. and globally, I have witnessed firsthand the devastating economic and social impact this has had on businesspeople, nonprofit organizations and “politically exposed persons.”

This situation changed as millions of people became familiar with the concept of de-banking after venture capitalist Marc Andreessen <a href=»https://www.youtube.com/watch?v=pRj9pIITwEU» target=»_blank»>appeared on the Joe Rogan podcast</a>. Andreessen discussed the exclusion of politically disfavored individuals and entities from the financial system, focusing specifically on the crypto-assets industry.

His remarks triggered a wave of responses, drawing attention to the broader issue of de-banking in the tech and cryptocurrency sectors. Prominent figures like the <a href=»https://x.com/tyler/status/1862860178577563944″ target=»_blank»>Winklevoss brothers</a>, known for their contributions to cryptocurrency exchange development, voiced their frustrations. <a href=»https://x.com/davidmarcus/status/1862654506774810641″ target=»_blank»>David Marcus</a>, former leader of Facebook’s Libra/Diem project, commented on how the U.S. Treasury Secretary Janet Yellen allegedly pressured Federal Reserve Chair Jerome Powell to dissuade banks from supporting the project (which was started by Facebook). Similarly, <a href=»https://x.com/Nneuman/status/1862899117019566262″ target=»_blank»>Nick Neuman</a>, CEO of Casa, recounted his experience of being de-banked by Silicon Valley Bank. His company, which offers self-custodial services, faced rejection from nearly 50 banks before finally securing a partnership with one institution.

In her recently published memoir, former First Lady Melania Trump revealed that a bank abruptly terminated her long-standing financial relationship, and her son Barron was blocked from opening a new account at the same institution. While the bank’s name remains undisclosed, the incident highlights the arbitrary and opaque nature of such decisions.

People and entities are being “de-banked” at an alarming rate, meaning their access to financial services is being terminated either by direct political pressures, the weaponization of regulations, or simply as an unintended consequence of other regulations.

De-banking is economically isolating not only entrepreneurs in the crypto-assets sector but also a wide range of communities, including international businesses, humanitarian organizations, public individuals, human rights activists, businesses deemed as unethical, and legal immigrants.

I began working on this policy issue in the spring of 2023. While researching sanctions policy, I discovered that malicious political actors around the world were exploiting the financial system to repress their opponents, both domestically and globally. In Nicaragua, for example, activists like <a href=»https://www.journalofdemocracy.org/online-exclusive/how-dictators-use-financial-repression-against-their-opponents/» target=»_blank»>Felix Maradiaga</a> have argued that the government has abused the financial system to terminate bank accounts and strip the assets of activists, non-profit organizations, and even the Church.

This understudies policy issue sparked my interest, prompting me to delve deeper into this completely understudied policy issue. I spoke with numerous dissidents in exile, human rights defenders, and businesspeople who had been targeted in this manner. They shared how their bank accounts were arbitrarily closed, assets frozen, and private financial information weaponized against them.

Malicious political and business actors de-bank people and entities by abusing Anti-Money Laundering and Counter-Terrorism Financing (AML/CFT) regulations. For instance, they orchestrate targeted disinformation campaigns to falsely accuse individuals or organizations of money laundering or financing terrorism. Amplified through state-controlled media, these accusations feed into automated compliance systems used by financial institutions. Once flagged, the targeted accounts are often closed or denied access to services to avoid regulatory penalties — irrespective of the credibility of the claims. This has been the case of activists like <a href=»https://www.youtube.com/watch?v=RniCVb99mM8″ target=»_blank»>Lyudmyla Kozlovska</a>, President of the Open Dialogue Foundation.

Moreover, malicious political actors exploit the global trust placed in Financial Intelligence Units (FIUs), which serve as clearinghouses for financial data under AML/CFT frameworks. AML/CFT regulations require FIUs to exchange sensitive financial data with international counterparts to combat crime. However, in authoritarian regimes, FIUs often operate as tools of state repression, granting governments access to dissidents’ financial records, transaction histories, and personal details. This sensitive information is weaponized to intimidate, harass, and undermine critics both domestically and abroad.

De-banking and vulnerable groups

Beyond their deliberate weaponization, the misuse of AML/CFT laws frequently yields unintended consequences that disproportionately impact vulnerable groups, such as immigrants. Financial institutions in the U.S. often classify individuals from certain regions as “high risk,” as their countries of origin are labeled as “high-risk jurisdictions” by financial institutions. This classification triggers enhanced compliance measures, requiring additional documentation, background checks, and ongoing monitoring for these individuals to access financial services.

For immigrants, this creates barriers to entry into the financial system. Many face exorbitant costs and excessive scrutiny, discouraging financial institutions from onboarding them as clients. This “de-risking” practice, where banks terminate or deny services to perceived high-risk clients to minimize compliance burdens, often leaves immigrants without access to even basic banking services such as savings accounts or payment systems. Without these services, immigrants struggle to integrate into their host countries’ economies, send remittances to their families, or establish credit histories, perpetuating cycles of financial and social exclusion.

The Need for Awareness and Action

The rise of de-banking as a political weapon is a wake-up call for all of us to act. Silence only perpetuates these injustices. If we do not act now, the financial system risks becoming a privilege reserved for the few — a battleground for partisan agendas — rather than a neutral platform designed to empower individuals, safeguard their savings, and facilitate economic activity.

We need to continue raising awareness about this crisis and fight for a “Right to Banking.” This right must transcend nationality, political beliefs, or economic status, ensuring that no one is arbitrarily excluded from participating in the global economy. Guaranteeing this access is not only an economic necessity but a moral imperative, foundational to modern citizenship and human dignity. We also ought to protect new financial solutions in the crypto-assets space, as they are key to advancing financial inclusion globally — thanks to their permissionless nature and decentralized structure.

To achieve this, we must demand structural reforms that address the flaws in AML/CFT regulations. These laws must include safeguards to prevent their misuse as tools for political repression or financial exclusion, as well as clear remedies for victims of debanking. Structural reforms are essential to ensure that neither autocratic politicians nor malicious private sector actors can weaponize the financial system.

Let’s work together, policymakers, industry leaders, and civil society, to build momentum for reforms that preserve the financial system’s integrity, including the protection of the crypto-assets sector. Together, we must ensure that the financial system (traditional and modern financial instruments) remains an inclusive and well-functioning pillar of our market economy.