Warren Shares Consensus with Trump Over Debanking Concerns

Senator Elizabeth Warren, a well-known crypto sceptic, signalled a surprising shift in stance Wednesday, expressing her willingness to collaborate with President Donald Trump and Senate Republicans to address debanking practices.

This marked a notable change in tone during a Senate hearing investigating claims that major banks have systematically denied services to industry leaders.

Warren, the top Democrat on the powerful Senate Banking Committee, said during the hearing:

“Debanking is a real problem. This shouldn’t be happening, and we need to figure out why, and who is responsible.”

In a letter to Trump, she wrote:

“I write to request that you take action on preventing the debanking of too many Americans across the country, including consumers unfairly locked out of the financial system due to overdraft fees, religious affiliation, or political beliefs.”

She added:

“Your Administration can help to address this problem by supporting the ongoing efforts of the Consumer Financial Protection Bureau (CFPB), the main agency in our government working to stop unfair debanking, and directing other agencies to use their authorities to bring an end to this practice.”

Warren urged the president to take immediate action to prevent Americans from being unfairly excluded from the financial system.

As the top Democrat on the Senate Banking Committee, she called on Trump to back the Consumer Financial Protection Bureau (CFPB) in tackling debanking—the abrupt closure of accounts deemed risky by financial institutions, often without notice.

Additionally, Warren recommended that US Treasury Secretary Scott Bessent, who also serves as acting CFPB director, unfreeze investigations, rulemaking, and litigation against banks unlawfully debanking their customers.

Anti-Crypto Warren’s Change of Heart to Crypto?

Warren’s unexpected stance has caught many in the digital assets industry off guard, given her long-standing reputation as a staunch opponent of crypto.

Industry leaders, including Coinbase CEO Brian Armstrong, have even accused her of spearheading “Operation Chokepoint 2.0,” a supposed Biden-era effort to covertly pressure banks into cutting ties with crypto-related clients.

Yet, in a surprising turn during Wednesday’s Senate Banking hearing, Warren addressed a panel of crypto industry witnesses—selected by Republicans and claiming to have faced years of debanking—and declared her support for their cause.

Warren said to Nathan McCauley, CEO of Anchorage Digital, a crypto infrastructure provider:

“I don’t think for a second you should be locked out of our banking system.”

Warren Strongly Advocates to Stop Debanking

Warren’s sudden shift may be driven by more than just concern for the crypto industry.

Throughout the hearing, she championed the CFPB—the agency she helped establish in 2011—as the sole federal body explicitly tasked with protecting consumers from debanking.

The CFPB, long a target of Republican criticism, was effectively dismantled by Trump earlier this week, giving Warren a platform to highlight its importance.

Warren noted:

“If the president is serious about stopping debanking, then he needs a strong CFPB as his partner to get this done.”

She also expanded the discussion beyond crypto, framing debanking as an issue affecting a broader range of groups, including nonprofits, the cannabis industry, ex-felons, and Muslim Americans.

Crypto leaders appeared surprised by Warren’s supportive line of questioning, such as when she asked if they would back stronger regulations to prevent banks from denying services.

However, there were moments of tension; Anchorage Digital’s CEO Nathan McCauley hesitated when Warren pressed him to name specific banks that had debanked him due to crypto ties:

“Senator, I don’t believe it’s productive to name individual banks. I believe the banks were the victims here.”

This unexpected alignment raises intriguing questions: Is Warren recalibrating her stance to deflect political backlash, or does this hint at a deeper shift in her approach to financial regulation?