The conflict between JPMorgan and the cryptocurrency exchange Gemini is escalating amid disputes over customer data access. Gemini founder Tyler Winklevoss criticized the bank's actions, leading to a pause in its re-onboarding process.
JPMorgan and Gemini Conflict
JPMorgan has paused the re-onboarding process of Gemini, founded by the Winklevoss twins, following a public post by Tyler Winklevoss criticizing the bank's stance on consumer data access through third-party applications like Plaid. He alleged that JPMorgan's decision was tied to his posting on platform X, where he stated that large banks are looking to limit users' access to their banking data. According to him, this would negatively impact companies working with such services.
Open Banking Access Issue
At the center of the dispute is the Open Banking Rule established under Section 1033 of the Consumer Financial Protection Act. This rule grants individuals the right to access their financial data through trusted apps and services. Winklevoss believes that big banks are attempting to reverse this rule by filing lawsuits against the Consumer Financial Protection Bureau. Should they succeed, users may lose the ability to link their accounts to external apps free of charge.
Gemini's History with JPMorgan and IPO Plans
This is not the first time that Gemini has faced issues with JPMorgan. In 2023, reports indicated that JPMorgan had asked Gemini to find a new banking partner, a claim that was denied by the exchange. Currently, with the pause on JPMorgan's connection, Gemini is also preparing for an IPO. The exchange filed with the U.S. Securities and Exchange Commission without revealing the number of shares or price range expected. This process is still in its early stages, and advancing it may require a reliable banking partner.
The situation between JPMorgan and Gemini continues to evolve, and the next steps by both parties will be crucial for user access to banking data in the crypto industry.
