- Winklevoss accuses JPMorgan of halting Gemini’s re-onboarding over criticism.
- Fintech data fees spark crypto backlash against JPMorgan’s new policy.
- Operation ChokePoint 2.0 resurfaces as banks allegedly target Gemini.
Tyler Winklevoss, co-founder of the Gemini cryptocurrency exchange, has accused JPMorgan of retaliating against his company. In his X post, he claimed that JPMorgan had stopped the re-onboarding of Gemini due to his criticism of the new policy that the bank had toward fintech companies.
Winklevoss Slams JPMorgan Over Fintech Data Fees
The event started on July 19, when Winklevoss publicly criticized the JPMorgan Chase choice of charging financial technology firms to access customer bank data. The action, as Bloomberg reported, has alarmed most people in the cryptocurrency and fintech communities. Winklevoss cautioned that such fees would break fintechs that third-party services use to connect the bank accounts of users with crypto exchanges such as Gemini.
After his statements, Winklevoss explained that JPMorgan abandoned the prospect of forming a banking relationship with Gemini once again. This decision, he attributed to his public criticism of the policy of the bank. He wrote that his tweet last week hit a nerve and that JPMorgan had once banned Gemini in what he termed as Operation ChokePoint 2.0.
The crypto world has a term, Operation ChokePoint 2.0, referring to the perceived government and banking campaign to restrict access to financial services to digital asset firms. Winklevoss feels that banks and regulators have been targeting Gemini unfairly in this larger movement to isolate the crypto industry.
Further, he also blamed JPMorgan for attempting to limit the freedom of consumers. More precisely, he stated that the policy of the bank might complicate the process of access and sharing of information about banking with services such as Plaid. Plaid is a financial technology company that enables users to link their bank accounts to other applications, such as crypto exchanges.
Gemini Faces Pressure Amid Shifting U.S. Crypto Landscape
As the situation unfolds, industry experts have started weighing in. Others feel that JPMorgan’s reported suspension of ties with Gemini may negatively affect the crypto market as a whole. In the last two years, most crypto platforms have lost banking partners as more pressure is exerted on them and as regulation becomes an issue of concern. Winklevoss allegations have raised questions on whether conventional banks are employing their influence to minimize competition among the emerging fintech and cryptocurrency businesses.
The FDIC has acknowledged that some financial companies have been targeted. However, it has not specifically named JPMorgan. However, the remarks of Winklevoss contribute to the existing discussions concerning the questions of fairness and competition in the financial sector.
Tyler and his twin brother Cameron Winklevoss launched Gemini in 2015. The platform has since gained popularity in the American crypto market. However, the company has been able to grow its services despite regulatory obstacles and an ever-changing financial environment.
Interestingly, this happens at the time of changing winds in Washington. Crypto enthusiasts are starting to see some hope after years of confusion in the Biden administration. The U.S. House of Representatives recently passed into law a new regulation of stablecoins in a major development. The bill was signed into law by President Donald Trump, signaling a rising political momentum toward the crypto industry.
At this point, the future of Gemini and J.P. Morgan is uncertain. Nevertheless, the larger consequences of this standoff can define the future of crypto banking access in the United States.
