Leading a16z partner Alex Rampell expressed concern over high fees set by major banks for access to crypto and fintech applications amid similar past attempts.
Operation Chokepoint 3.0 by Major Banks
Rampell claims that major banks are trying to limit the growth of crypto innovations through high fees that may discriminate against fintech companies. He referred to "Operation Chokepoint 2.0" during which government regulators sought to debank the crypto sector as a precursor to the current situation.
Rampell noted:
> "Banks are aiming to implement their own Chokepoint 3.0 — charging insanely high fees to access data or move money to crypto and fintech apps."
Rampell's Call to CFPB
In his plea, Rampell called on the Consumer Financial Protection Bureau (CFPB) to intervene and prevent JPMorgan from implementing the fees. He emphasized that US law grants customers the right to their data and that CFPB must protect this right. Rampell expressed skepticism over CFPB's rulings, stating that the increased fees would lead to diminished services for customers, who would be forced to remain with major banks.
He stated:
> "In a perfect world, consumers would vote with their wallets. But every bank will likely do this... Many banks have hostages, not customers."
JPMorgan and Coinbase Partnership
The criticism of JPMorgan came alongside the announcement of a partnership between the bank and Coinbase, which will allow customers to fund their Coinbase accounts using Chase credit cards in 2025. Despite this agreement, many experts believe JPMorgan is lagging behind the innovations happening in the crypto sector.
The current situation in the banking market raises significant concerns among experts regarding the future of crypto innovations and competition. Regulators need to pay due attention to this matter.
