When confronted by members of the Senate Banking Committee about concerns over the “debanking” trend plaguing the crypto industry, Federal Reserve Chairman Jerome Powell said he’s also worried about it and is already tweaking internal supervision policies at the Fed.

“I too, am troubled by the quantity of these reports,” Powell said in routine testimony before the Senate Banking Committee on Tuesday. He offered that “one theory is that banks are just very risk averse” about money-laundering rules and aggressive supervision under which they’re unwilling to welcome customers that may stretch their compliance demands.

“We’re determined to take a fresh look at that,” said Powell, who added that he’d been “struck by the growing number of cases of what appears to be debanking.”

Republican lawmakers and the new financial watchdogs appointed by President Donald Trump have devoted special scrutiny to the so-called debanking they say was encouraged by the previous administration’s banking agencies, including the Fed, the Federal Deposit Insurance Corp. and the Office of the Comptroller of the

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Author: Jesse Hamilton, Stephen Alpher