How Government-Led Debanking Actually Works

[cryptoenthusiast]

Anthony identifies two main forms of government debanking: direct and indirect. Direct debanking occurs when authorities issue letters or court orders instructing banks to close accounts, while indirect debanking relies on regulations and legislation that pressure institutions to sever ties with certain customers.

One example cited involves the Federal Deposit Insurance Corporation sending letters to banks urging them to halt crypto-related activity without clear timelines. According to the report, these letters functioned as de facto termination orders, creating long-term uncertainty and discouraging banks from re-engaging with affected industries.

[chainsniff]

indirect debanking feels worse tbh, at least direct orders are honest about it