Debanking (and Debunking?)

Recently, noted VC Marc Andreessen kicked off a discussion about debanking, in a podcast with his co-founder Ben Horowitz (begins at 7:42) and in an appearance on Joe Rogan’s podcast). The venture firm they founded, a16z, also published a brief on this topic.

The central thrust, quoting a16z’s brief (ellipsis in original): “Debanking can therefore be used as a tool or weapon systemically wielded by specific political actors / agencies against private individuals or industries without due process. Imagine if the government decided who could or couldn’t get electricity merely because of their politics, or some arbitrary reason… without having to explain, notify, or offer recourse. That’s what’s happening with debanking.”

If you are new here, you are presently reading a column which routinely covers compliance-oriented topics at the intersection of the financial system and technology companies. This topic is pretty central to my beat, and I have some relevant personal knowledge.

“It’s not a conspiracy theory if people really are out to get you.” sums up part of my reaction to this, but only part. There exists some amount of conflation between what private actors are doing, what state actors have de facto or de jure commanded that they do, and which particular state and political actors have their fingers on the keyboard. These create a complex system; the threads are not entirely divorced from each other.

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