A new report from the Cato Institute, published on January 12, 2026, by analyst Nicholas Anthony, has found that the majority of debanking cases in the United States are driven by direct or indirect government pressure, rather than independent decisions by financial institutions or bias. The study challenges the common narrative that account closures are primarily due to political or religious discrimination by banks.
The report identifies three distinct forms of debanking: political/religious debanking (closures based on beliefs), operational debanking (business-driven exits), and government debanking. It concludes that government pressure is the leading cause. This pressure manifests in two ways: direct action through formal letters or court orders, and indirect pressure via regulations or legislation that label certain clients as "too risky."
Cryptocurrency companies are highlighted as among the most affected sectors. The report details how digital asset firms have long faced difficulties accessing banking services, with regulators using regulatory risk to discourage banks from serving them. A key example cited is the Federal Deposit Insurance Corporation (FDIC), which sent letters urging banks to pause crypto-related activities without clear guidance, effectively forcing account closures.
The debanking debate has entered the public spotlight through high-profile cases. JPMorgan Chase CEO Jamie Dimon acknowledged in December that pressure from both major U.S. political parties influences banking decisions, while denying closures based on views. Simultaneously, executives like Jack Mallers of Strike and others from ShapeShift claimed JPMorgan shut down accounts without explanation.
The report argues that while executive actions under former President Donald Trump and leadership changes at agencies like the Securities and Exchange Commission (SEC) have addressed some concerns, they are not a lasting solution. The study contends that Congress holds the key to reform, urging amendments to the Bank Secrecy Act, an end to reputational risk regulation, and the lifting of confidentiality rules that shield government pressure from public scrutiny. "If Congress wants to reduce debanking, it must remove the tools that allow government agencies to quietly steer banks’ decisions," Anthony wrote.
