U.S. Banking Regulator Warns Wall Street: 'Debanking' Practices Are Unlawful

The Acting Comptroller of the Currency, Michael J. Hsu, issued a stark warning to major U.S. banks, labeling the practice of 'debanking'—cutting off services to entire categories of customers without proper risk assessment—as potentially unlawful. In a recent speech, Hsu emphasized that banks must manage risks individually rather than engaging in broad-brush termination of accounts for sectors like cryptocurrency, firearms, or fossil fuels. This regulatory stance challenges current Wall Street trends and underscores the need for compliant, case-by-case evaluations. The move is seen as a significant development for industries facing financial exclusion, including crypto businesses seeking stable banking relationships.