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Editorial: NYT Breaks Rank While WaPo Denies Reality

Editor’s note: Today’s newsletter content is different than our typical content. Today we’re showing the contrasting coverage of the crypto industry and regulatory authority by the New York Times and the Washington Post.

In a striking divergence from the establishment media playbook, the New York Times has stepped up to investigate the chilling phenomenon of crypto “debanking.” Through rigorous reporting, the Times has brought attention to a troubling reality:

Cryptocurrency firms are being systematically excluded from the financial system under the guise of regulatory caution. In stark contrast, the Washington Post dismisses these claims, choosing instead to downplay the coordinated pressures affecting this innovative sector.

NYT Exposes the Evidence

The New York Times doesn’t rely on hearsay—it backs its reporting with tangible evidence and first-hand accounts:

• Compliance Crackdowns: Crypto firms like Eco have been burdened with “a litany of new compliance and reporting requirements” from banks, as highlighted by Eco founder Ryne Saxe. These mounting pressures eventually led Eco to shut down its app, restructure its business model, and ultimately restore services only after months of financial limbo. This pattern is emblematic of the broader financial exclusion facing the crypto industry​.

• Operation Chokepoint 2.0: The Times ties the current debanking wave to what some industry leaders call “Operation Chokepoint 2.0.” This echoes the Obama-era initiative to freeze out politically disfavored industries by targeting their banking partners. Influential voices like Marc Andreessen have claimed that regulators are effectively “terrorizing” crypto startups by strong-arming banks to sever ties with the sector. This isn’t speculation—it reflects a consistent trend observed across multiple firms​.

• Political Agendas at Play: The Times reveals how regulatory agencies and government directives have fostered a hostile environment for crypto firms. Letters from top financial regulators in 2023 warned banks to exercise “caution” in dealing with crypto, creating what insiders describe as a de facto blacklist. These warnings align with broader federal guidance urging banks to distance themselves from “risky digital assets,” a vague designation that has become a death knell for many startups​.

• Notable Failures: The collapse of Silvergate, Signature, and Silicon Valley Bank—a trio of institutions heavily relied upon by the crypto sector—serves as a glaring example of how these pressures are reshaping the industry. The Times reports that crypto firms scrambled to find alternative banking partners, with some being turned away outright. One crypto founder, Konstantin Richter, described how Bank of America abruptly closed his company’s account, leaving him feeling “violated” and unbanked​.

WaPo’s Denial and Deflection

In sharp contrast, the Washington Post dismisses these accounts, claiming there is “no evidence” of systemic debanking. While the Post acknowledges that banks scrutinize high-risk industries like crypto, it downplays the political undertones driving these actions. By selectively focusing on crypto’s association with money laundering and fraud, the Post conveniently sidesteps the coordinated nature of regulatory pressure detailed by the Times.

Why This Matters

The New York Times deserves praise for amplifying voices in the crypto community and laying out concrete evidence of debanking efforts. These aren’t isolated incidents—they’re part of a broader trend that raises critical questions about the relationship between financial institutions and state power. If entire industries can be quietly cut off from the banking system, what does this mean for the future of innovation and economic freedom?

The Washington Post’s dismissal of these claims as anecdotal misses the mark, ignoring the growing body of evidence and testimony that regulatory overreach is stifling a burgeoning sector. Meanwhile, the Times has set a vital precedent by covering the issue in depth, pushing back against the prevailing narrative that regulation is inherently benign.

A Call to Action

The crypto industry may not be without fault, but its exclusion from the financial system deserves scrutiny and transparency—not denial. By shining a light on this troubling dynamic, the New York Times has done a service not only to the crypto industry but to all who value free markets and innovation. It’s time for other media outlets, including the Washington Post, to follow suit and confront this issue with the rigor and honesty it demands.

Washington Post 

NYTimes

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The BRRR is meant for informational purposes only. It is not investment advice. Please consult with your investment, tax, or legal advisor before making any investment decisions.ll