The US Federal Trade Commission has issued warning letters to Visa, Mastercard, PayPal and Stripe, cautioning that denying users access to financial services could violate US consumer protection laws.
In letters dated 26 Mar, FTC Chairman Andrew Ferguson said practices that "refuse, suspend, or withdraw" services from consumers may breach the FTC Act if they are inconsistent with firms' own terms or deemed unfair.
The warnings centre on so-called "debanking," or the removal of individuals or businesses from financial platforms, particularly where decisions are linked to political or religious views. Across all four letters, the FTC pointed to claims that financial providers may be restricting access to services based on customers’ beliefs rather than commercial risk.
Crypto firms hit by debanking
Debanking has become a recurring concern in the crypto industry, with firms reporting sudden loss of access to banking and payment rails.
In January 2023, Kraken halted certain USD transactions after its banking partner Signature Bank pulled back from crypto clients. Around the same period, Anchorage Digital lost a banking relationship, with the lender saying it was not "comfortable" with "crypto clients' transactions."
Policy shifts
The issue is now translating into policy shifts. In March 2025, the Office of the Comptroller of the Currency removed "reputational risk" from bank supervision guidelines, a factor long criticised by crypto firms and industry groups as contributing to debanking.
Debanking concerns have also extended to fintechs. In January 2021, Stripe stopped processing payments for Donald Trump's presidential campaign website following the Capitol riot, a move later cited in policy debates around politically motivated financial exclusion.
The FTC letters are a formal notice of potential liability under Section 5 of the FTC Act, which prohibits unfair or deceptive practices. The alleged actions could trigger investigations or enforcement.
