Elizabeth Warren Shifts Stance on Crypto, Aligns With Trump and GOP on Debanking Issue

Senator Elizabeth Warren (D-MA), long known for her critical stance on cryptocurrency, has voiced support for addressing the issue of debanking, even expressing a willingness to collaborate with former President Donald Trump and Senate Republicans. During a Senate Banking Committee hearing on Wednesday, Warren took a firm stance against financial institutions allegedly denying services to crypto industry leaders, marking a significant departure from her traditionally adversarial position on digital assets.

A Surprising Ally for Crypto Leaders

Warren, who has historically been viewed as a staunch opponent of the crypto industry, acknowledged the severity of debanking practices and emphasized the need for accountability. “Debanking is a real problem,” she stated. “This shouldn’t be happening, and we need to figure out why, and who is responsible.” Her comments sent shockwaves through the digital asset sector, where she has often been regarded as a key advocate for regulatory crackdowns.

Notably, figures like Coinbase CEO Brian Armstrong have previously accused Warren of being behind “Operation Chokepoint 2.0,” an alleged covert effort to pressure banks into severing ties with crypto-related businesses. Yet, Wednesday’s hearing presented an unexpected alliance, as Warren appeared to side with crypto industry witnesses, handpicked by Republicans, who testified about their struggles with debanking.

Regulatory Motives at Play?

While Warren’s newfound advocacy for crypto banking rights raised eyebrows, some analysts speculate that her stance is strategically linked to bolstering the Consumer Financial Protection Bureau (CFPB), a regulatory agency she helped create in 2011. Throughout the hearing, Warren championed the CFPB as the only federal agency equipped to address debanking practices, highlighting its recent dismantling by Trump as a key obstacle to protecting affected industries.

“If the president is serious about stopping debanking, then he needs a strong CFPB as his partner to get this done,” Warren asserted. Her argument framed the debate as a broader consumer protection issue, rather than just a crypto-centric concern.

Beyond Crypto: A Wider Push Against Debanking

Warren also sought to expand the conversation, citing other groups that have allegedly faced discrimination in the banking system, including nonprofits, cannabis businesses, ex-felons, and Muslim Americans. Her approach suggested an effort to position herself as a champion of financial inclusivity, rather than simply reversing course on crypto.

Despite her apparent alignment with industry leaders on the debanking issue, some moments of friction remained. When Warren pressed Anchorage Digital CEO Nathan McCauley to name specific banks that had denied services to crypto firms, he hesitated. “Senator, I don’t believe it’s productive to name individual banks,” McCauley responded, instead shifting the blame onto regulatory pressures banks may have faced.

A Pivotal Moment for Crypto Policy?

Warren’s remarks signal a potential inflection point in crypto policy discussions. While it remains unclear whether her support for ending debanking will translate into broader acceptance of digital assets, her willingness to work with Trump and Senate Republicans on the matter underscores its growing significance in Washington. With regulatory debates heating up, the crypto industry may have found an unlikely advocate in one of its most vocal critics—albeit on her own terms.