Once upon a time, over three years ago, Glauber Contessoto, before achieving his first millionaire status, borrowed $1,500 from his aunt Cristiane Almaraz. He used this money to invest in Dogecoin, a cryptocurrency that began as a lighthearted joke about an internet dog meme. In return, he promised her a house once Doge reached great heights as he believed it would.

As of Late November: A Tale of Contrasting Fortunes

By late November when they had a Zoom conversation together, Contessoto had amassed $2.2 million in Doge. He also had significant holdings in other cryptocurrencies. He planned to sell some of the highly volatile Dogecoin in six to eight months when he thought the price would more than triple. However, Almaraz wanted him to sell immediately."Ultimately, at that point, I'll have $10 million. Even with a million-dollar house, it won't significantly affect my finances," said Contessoto."I don't need a million-dollar house," replied Almaraz."You live in Maryland. You do need a million-dollar house," Contessoto insisted.Almaraz is a housekeeper, and her husband works as an Amazon driver. They have two kids. After a car theft forced them to buy a new vehicle, they have only about $5,000 in savings. Part of her frustration is that she feels she's been through this before."Because Dogecoin is very unstable. How can you guarantee that in six months you'll achieve that?" Almaraz asked."Because I'm basing this on patterns. Trends, patterns, charts, and graphs. I now focus on crypto full-time. I study this," said Contessoto.In 2021, after investing his life savings in Dogecoin, Contessoto had about $3 million in the memcoin and became a sort of crypto celebrity. His YouTube channel and social media popularity made him the most famous Dogecoin evangelist after Elon Musk.But just a year later, as the buzz for Bitcoin and NFTs cooled and crypto winter set in, the "Dogecoin millionaire" became the "Dogecoin former millionaire.""I remember very clearly. I was in the parking lot of the gym I usually went to. I was sitting in the car watching it plummet. The amount in my Robin Hood account kept decreasing all the way to $200,000," said Contessoto.However, Contessoto stuck with the memecoin that got him here. He used the money from crypto-related endorsements to buy more Doge and other cryptocurrencies."There are days when I think, 'Oh, I kind of wish I had sold.' But ultimately, that's not what my heart tells me. I strongly believe in following my gut feelings on things," said Contessoto.His gut feeling proved correct. In 2024, Doge started rising again, partly in line with Trump's poll numbers. The former president had promised to ease regulations on crypto during his campaign.After the election, something extraordinary happened. It was one of those glitches in the matrix that made one question not only if they were living in a simulation but if it was a simulation designed specifically to mock them for prudently investing their retirement money in an index fund.Trump announced plans to create the Department of Government Efficiency - DOGE for short - an organization tasked with reducing the federal bureaucracy. Musk had half-jokingly proposed this before the election.Dogecoin soared. Since the election, it's up more than 120%."That's like perfect branding, right?" said Contessoto. "I couldn't have created that in a better way."Trump and his DOGE have been a significant financial boon for Contessoto. But there's another aspect of Trump's agenda that could be a major problem."I am currently undocumented. Yes, I don't have papers," said Contessoto.Contessoto came to the US from Brazil when he was 5. His mother has a green card, but he's still trying to obtain legal status."I have conflicting emotions about Trump. Financially, he's probably the best bet. But on the other hand, I could get a knock on the door next week and be deported. And everything I've worked for could go up in flames," said Contessoto.During the holidays, Contessoto is actually outside the US dealing with a family emergency. He's unsure if he'll be allowed back into the US without his papers.For the first time in years, he won't be spending Christmas with aunt Cristiane in Maryland. He said she can have anything she wants as a gift - short of a house.

Cryptocurrencies like bitcoin were initially designed to challenge traditional banks. Now, with the support of tech billionaires Elon Musk and Marc Andreessen, the crypto industry is striving for a new goal: the right to have a checking account. Musk and Andreessen are prominent voices advocating for crypto industry players who claim to be unfairly discriminated against when trying to work with big corporate banks. The allegation is that banks, under pressure from the Biden administration, have unjustly terminated the bank accounts of those involved in cryptocurrency.

Uncovering the Crypto Banking Battle

Challenging Traditional Banking

Cryptocurrencies emerged as a means to disrupt the traditional banking system. They offered an alternative financial model that bypassed the need for intermediaries. However, as the crypto industry grew, it faced significant challenges from traditional banks. Elon Musk and Marc Andreessen saw this as an injustice and decided to take a stand. They believe that crypto industry players should have the same rights as other businesses when it comes to accessing banking services.

The concept of "debanking" has gained attention in recent months. Andreessen's claim that he knows 30 tech company founders who have been "debanked in the past four years" sparked a wave of anecdotes from social media users. This has highlighted the issue of unfair treatment faced by the crypto industry. Musk, too, has voiced his concerns, calling debanking an example of "how evil the government has been."

Regulatory Responses and Disputes

Various federal regulatory agencies have rejected the allegation of widespread debanking. The Office of the Comptroller of the Currency, which charters and supervises national banks, expects banks to assess risks on a case-by-case basis and does not direct them to open or close accounts. The White House has referred questions about Musk and Andreessen's statements to the Treasury Department, which declined to comment.

While there is no guaranteed right to banking services, the comments by Andreessen and Musk have tapped into a sense of discontent among crypto enthusiasts, right-wing activists, and even bank lobbyists. Many crypto firms must navigate a complex maze of government regulations to ensure they are not used for illegal activities. Some banks find it too difficult to comply with these regulations and choose not to do business with certain customers.

Musk and Andreessen's Push for Change

Musk and Andreessen are using their political influence to push for massive changes in the banking sector. Andreessen's investment firm, Andreessen Horowitz, argued that everyone has the right to a bank account, even crypto companies. Musk, in response to debanking issues, called for the deletion of the Consumer Financial Protection Bureau.

The CFPB is currently fighting in a federal appeals court for the authority to investigate debanking allegations. Last month, it finalized a rule to oversee payment wallet apps. Trump, during his campaign, wooed crypto industry support by talking about debanking and has appointed industry allies to key positions.

The Impact on Crypto Firms

The debanking issue has had a significant impact on crypto firms. For example, Sid Kalla, the co-founder of Roll Labs, faced a delay in paychecks for his 12 employees and contractors when his company's business account was closed. Chase, a unit of JPMorgan Chase, declined to comment on Roll Labs' situation.

At least one bank industry trade group, the Bank Policy Institute, has accused bank regulators of running a "secret enforcement regime" that forces banks to close accounts. The crypto industry remains legal, but it has had a scandal-filled few years, with the founders of Binance and FTX facing legal issues.

The Stakes and Proposed Solutions

The stakes in the debanking debate are high. Some crypto investors and lawmakers have proposed a federal right to banking services. Republicans in Congress, including Sen. Kevin Cramer, have sponsored a bill to force banks to do business with compliant customers.

The issue of debanking is not limited to the crypto industry. Pawn shops, firearms manufacturers, and mining companies have also complained about being discriminated against by banks. The allegations have echoes of the "Operation Choke Point" program.

The FDIC and Crypto Exchanges

On Friday, Coinbase released letters it received after suing the FDIC. The FDIC asked banks to "pause" or "refrain from providing" services. Paul Grewal, chief legal officer for Coinbase, believes the FDIC may be acting unlawfully. The FDIC has denied targeting crypto startups but has also complained about some crypto firms' false representations.