WASHINGTON, D.C.— Better Markets released a new fact sheet entitled “Crypto’s Predatory Targeting of Minority Communities” to highlight the ways that the crypto industry disproportionately harms the very people it claims to uplift.
“Historically, minority groups in the U.S.—particularly Black and Latino communities—have been subjected to financial discrimination, exclusion, and exploitation through practices like redlining, loan denials, predatory lending, and ‘banking while Black’ practices,” says Cantrell Dumas, Director of Derivatives Policy. “This causes a deep mistrust toward traditional financial systems, and is one of the most significant reasons for these communities to turn towards crypto—for the promise of a new, more inclusive alternative.”
“Crypto exploits these legitimate concerns and the deep desire to close the wealth gap, but its promises are at best a mirage if not an outright fraud,” says President & CEO Dennis Kelleher. “The crypto markets are unregulated, non-transparent, and full of con artists and criminals, as well as wealth destroying volatility. As a result, minorities and low- and moderate-income communities are not getting financial inclusion; they are being ripped off by predatory inclusion. This is best illustrated by crypto’s targeting of minorities with Bitcoin ATMs, which are disproportionately in Latino, Black, and low-income neighborhoods, charge as much as 22% in fees, and only allow purchases but not sales of Bitcoin 92% of the time.”
The Fact Sheet makes clear that underserved investors deserve access to financial products and a financial system that actually serves their needs and helps them build wealth without ripping them off, discriminating against them, or exploiting them. Crypto does not do that and, in fact, does the opposite. The claims to the contrary simply do not withstand analysis. Policymakers must focus on addressing the systemic racism embedded in the traditional financial system, which continues to marginalize, exploit, and underserve minority groups. This includes expanding access to fair and affordable credit, combating discriminatory lending practices, and investing in community-based financial institutions that prioritize equity and inclusivity. Self-serving and biased claims about these worthy goals from the non- traditional financial system like crypto must be subjected to rigorous scrutiny, not accepted at face value.
Learn more in our fact sheet.
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Better Markets is a non-profit, non-partisan, and independent organization founded in the wake of the 2008 financial crisis to promote the public interest in the financial markets, support the financial reform of Wall Street and make our financial system work for all Americans again. Better Markets works with allies—including many in finance—to promote pro-market, pro-business and pro-growth policies that help build a stronger, safer financial system that protects and promotes Americans’ jobs, savings, retirements and more. To learn more, visit www.bettermarkets.org.
