US banking giant JpMorgan reportedly has stopped its client onboarding process with cryptocurrency exchange Gemini.
The decision comes shortly after a social media post by Gemini co-founder Tyler Winklevos, who accused the bank of “trying to kill fintech and crypto companies.”
In another post today, Winklevoss claimed that JpMorgan had cancelled Gemini’s re-reception process due to a previous tweet by Winklevoss. In that tweet, Winklevoss warned that it was trying to bypass major banks by open banking rules drafted by the Consumer Financial Protection Bureau (CFPB), which will be effective at the end of 2024.
The new regulations give consumers the right to share their bank data freely with third-party platforms. Platforms like Plaid serve as important bridges for transferring funds to cryptocurrency exchanges such as Gemini, Coinbase, and Kraken.
Winklevoss issued the following statement:
“They want to quietly steal your rights for free access to your bank data. We will not be silent, Jamie Dimon. Sorry.”
Some people in the crypto industry see this development as a new example of the long-standing “Operation Choke Point 2.0.” The manipulation is described as an effort by which regulators indirectly pressure them to push crypto companies out of the financial system. The debate calmed down earlier this year with Trump-era reforms, but recent developments have rekindled tensions.
Ironically, JPMorgan recently took a more generous approach to cryptocurrency. According to a report by the Financial Times last week, banks are exploring loan products directly secured by crypto assets like Bitcoin. This stance contradicts CEO Jamie Dimon’s previous statement. Bitcoin is called a “scam.”
*This is not investment advice.
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