2024

Elon Musk

Banks, tariffs, Trump and Elon Musk take the yearly trophy home. 2024 is coming to an end, which means Donald Trump’s Inauguration as US President is just 20 days away. One of his biggest promises to the American people is to improve the country’s economy, and his sights are well set on the banking sector, which happens to be at the center of a controversy dubbed “debanking.”&nbsp; 
More than a year after Nigel Farage spoke about debanking in the United Kingdom, debates are heating up in the United States. Popular voices, including venture capitalist Marc Andreessen and tech magnate Elon Musk, have <a href="https://www.ft.com/content/a44b3d36-65c9-4186-9fd3-b1595261aa42" rel="nofollow noopener" target="_blank">raised concerns</a> about individuals and businesses losing access to the banking system, allegedly due to political affiliations or ties to cryptocurrency. 
Marc Andreessen, a co-founder of Netscape and influential investor, highlighted the issue during a late-November interview with podcast host Joe Rogan. Andreessen alleged that banks are targeting individuals on the political right, labeling them as “politically exposed” and severing financial ties.&nbsp; 
He further claimed that banks, under pressure from the Biden administration, have been systematically shutting down accounts tied to cryptocurrency-related businesses. 
<h3 id="span-style-font-weight-400-us-banks-tense-relationship-with-crypto-voices-rise-in-volumes-span">US Banks’ tense relationship with crypto: Voices rise in volumes</h3> 
“In the past four years, I know 30 tech company founders who have been debanked,” Andreessen stated, igniting a wave of anecdotes from social media users reporting similar experiences. His comments added fuel to the fire, prompting widespread discussion about the politicization of banking practices. 
Elon Musk weighed in on the matter via X, calling debanking an example of government overreach. Musk argued that politically motivated account closures should be considered a federal crime.&nbsp; 
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
 Forward this video to friends &amp; family to understand just how evil the government has been <a href="https://t.co/XgRnikMK6J" rel="nofollow" target="_blank">pic.twitter.com/XgRnikMK6J</a> 
 — Kekius Maximus (@elonmusk) <a href="https://twitter.com/elonmusk/status/1862633099906937251?ref_src=twsrc%5Etfw" rel="nofollow noopener" target="_blank">November 29, 2024</a>
</blockquote> 
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Meanwhile, Melania Trump’s claims that her bank terminated her account in the wake of the January 6 Capitol attack have further energized critics to amplify their claims. Reports that her son Barron was also denied a bank account have added to the financial bias “allegations.” 
On the political right, these actions have been collectively dubbed “Operation Choke Point 2.0,” referencing an Obama-era initiative that sought to limit banking access for controversial industries such as payday lending.&nbsp; 
David Sacks, the incoming AI and cryptocurrency czar for the Trump administration, has vowed to examine the issue. He gave his sentiments on the matter, saying, “There are too many stories of people being hurt by Operation Choke Point 2.0.” 
<h3 id="span-style-font-weight-400-is-there-something-like-too-much-bureaucracy-span">Is there something like too much bureaucracy?</h3> 
Critics of debanking argue that bureaucratic hurdles and regulatory pressures are driving banks to sever ties with certain clients. Since the financial crisis of 2008, banks have faced thousands of pages of new regulations and billions of dollars in fines, leading to a more risk-averse approach.&nbsp; 
When banks terminate client relationships, the reasoning is often vague, fueling speculation that they are making <a href="https://www.nbcnews.com/tech/internet/debanking-what-is-meaning-crypto-musk-rogan-andreessen-rcna182597" rel="nofollow noopener" target="_blank">politically motivated</a> decisions. 
Regulators, including the Federal Deposit Insurance Corporation (FDIC), insist that they do not direct banks to drop specific customers. However, in 2022, the FDIC advised banks to inform them of any plans to engage with cryptocurrency businesses, which begs the question of whether account closures are a matter of choice or coincidence. 
Edward Fishman, a former State Department official and author of Chokepoints: American Power in the Age of Economic Warfare, stated, “With crypto becoming more intertwined with the formal financial system and banking sector, banks are petrified of running afoul of sanctions.” 
<h3 id="span-style-font-weight-400-ai-and-crypto-adoption-growth-is-slow-is-biden-responsible-span">AI and crypto adoption growth is slow: Is Biden responsible?</h3> 
The debanking debate is just one aspect of broader concerns about government overreach. Critics of the Biden administration argue that its actions have stifled emerging technologies, including artificial intelligence (AI) and cryptocurrency, by exploiting <a href="https://thehill.com/opinion/5059415-biden-white-house-debanking-tech/" rel="nofollow noopener" target="_blank">regulatory chokepoints</a>.&nbsp; 
Marc Andreessen revealed that he was warned against funding AI startups during a meeting with White House officials earlier this year. Administration aides allegedly indicated plans to create a “regulatory moat” around select AI companies they could control. 
Some officials reportedly went as far as suggesting that certain areas of mathematics could be classified, echoing Cold War-era restrictions on physics research. These claims have raised alarm about the potential politicization of technological development. 
In 2022, the Biden administration reportedly issued an executive order supporting the exploration of a central bank digital currency (CBDC). Accompanying this move was a white paper advocating for policies to “limit or eliminate” <a href="https://home.treasury.gov/news/press-releases/jy2335" rel="nofollow noopener" target="_blank">Bitcoin mining</a>.&nbsp; 
By 2024, the administration <a href="https://www.coindesk.com/opinion/2024/06/13/bidens-proposed-nonsensical-30-tax-would-kill-bitcoin-mining-in-the-us" rel="nofollow noopener" target="_blank">implemented</a> a 30% excise tax on electricity used by Bitcoin miners and imposed mandatory energy audits on large mining operations. These measures sparked lawsuits from crypto companies, which ultimately succeeded in court. 
Critics argue that these actions were designed to centralize control over digital assets and restrict miners’ access to essential resources such as energy. “Unplugging,” as it has been termed, mirrors the alleged debanking strategy to control cryptocurrency through indirect means. 
<h3 id="span-style-font-weight-400-trump-s-administration-promises-reforms-span">Trump’s administration promises reforms</h3> 
President-elect Donald Trump’s incoming administration has vowed to address the debanking scandal and related issues. David Sacks has called for an investigation into regulatory agencies, including the FDIC, the Office of the Comptroller of the Currency (OCC), and the Federal Reserve’s prudential regulatory division.&nbsp; 
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
 Forward this video to friends &amp; family to understand just how evil the government has been <a href="https://t.co/XgRnikMK6J" rel="nofollow" target="_blank">pic.twitter.com/XgRnikMK6J</a> 
 — Kekius Maximus (@elonmusk) <a href="https://twitter.com/elonmusk/status/1862633099906937251?ref_src=twsrc%5Etfw" rel="nofollow noopener" target="_blank">November 29, 2024</a>
</blockquote> 
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Former Comptroller of the Currency Brian Brooks has also suggested revisiting “fair access” rules that would require banks to provide services unless they have a legitimate financial reason to terminate a relationship. 
The Trump team proposed reforms that aim to ensure neutrality in banking practices and safeguard access to financial services for lawful activities. Critics of debanking hope these measures will prevent further weaponization of the <a href="https://www.cryptopolitan.com/circle-expands-usdc-to-brazil-and-mexico/">banking system</a> and foster an environment of fair access for all industries, regardless of political or regulatory pressures. 
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Trouble catches up with US banks over ‘debanking’

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