Cato report points to government as driver of disintermediation in the US.

• Banking decline in the US driven by government pressure
• Cryptocurrencies suffer disproportionate bank shutdowns.
• Congress may reform the Banking Secrecy Law.

A new report from the Cato Institute indicates that most cases of disintermediation in the United States are linked to direct or indirect government pressure, and not to autonomous decisions by banks motivated by political or religious bias. The study analyzes public documents, financial industry reports, and recent regulatory actions to support this conclusion.

According to the institute, it is important to differentiate between the types of disintermediation. The report separates account closures for political or religious reasons, purely operational decisions, and so-called governmental disintermediation, when authorities use their regulatory power to influence the relationship between banks and specific clients.

In this context, cryptocurrency companies appear among the most affected. The study states that regulators frequently classify the sector as "too risky" for financial institutions, which ultimately discourages banks from maintaining or opening accounts for companies linked to digital assets, even without formal prohibitions in place.

According to the analysis, this pressure occurs in two main ways. The direct form involves official letters or court orders requesting the closure of accounts. The indirect form manifests itself through rules, regulatory guidelines, and compliance requirements that increase the cost and perceived risk of serving certain clients.

The report cites actions by the Federal Deposit Insurance Corporation (FDIC), which allegedly sent communications to banks recommending the suspension of cryptocurrency-related activities, without clear deadlines or follow-up guidelines. In practice, this type of approach can lead to the preemptive closure of accounts to avoid conflicts with regulators.

The issue gained public attention in December when JPMorgan Chase CEO Jamie Dimon stated that the bank does not close accounts for political or religious reasons. He acknowledged, however, that the political environment influences banking decisions. Around the same time, Jack Mallers, CEO of Strike, stated that JPMorgan closed his personal accounts without providing justification. Executives at ShapeShift reported similar experiences in public statements.

Although the report acknowledges that executive actions by the current US president, Donald Trump, and changes in the leadership of bodies such as the Securities and Exchange Commission (SEC) have addressed part of the problem, the institute assesses that these measures do not resolve the structural issue.

According to the Cato Institute, the solution lies with Congress. The study advocates for changes to the Bank Secrecy Law, the elimination of reputational risk rules, and greater transparency regarding the pressure exerted by authorities, removing mechanisms that allow government interference in bank decisions.