JPMorgan Chase has ceased the re-onboarding of cryptocurrency exchange Gemini following criticism from co-founder Tyler Winklevoss. This move may impact users' access to fiat currency.
Tyler Winklevoss' Criticism
Tyler Winklevoss stated that JPMorgan paused the re-onboarding of Gemini as a banking client in retaliation for his critical assessment of the bank's fintech policies. He raised concerns about JPMorgan's approach to open banking and fintech access.
> "My tweet from last week struck a nerve. This week, JPMorgan told us that because of it, they were pausing their re-onboarding of @Gemini as a customer after they off-boarded us during Operation Choke Point 2.0. They want us to stay silent while they quietly try to take away your right to access YOUR banking data for free through third-party fintechs like @Plaid." CITE_W_A
Financial Impact on Gemini
The financial implications for Gemini could be significant if the pause is extended, affecting fiat conversion for cryptocurrencies such as Bitcoin and Ethereum, potentially disrupting liquidity and transaction settlements for U.S. users.
Historical Context and Potential Outcomes
Historical incidents, such as Operation Choke Point 2.0, are relevant in understanding the current context. Historical trends indicate that banks may restrict services to crypto businesses, increasing transaction friction. Potential outcomes include tighter regulatory scrutiny on banking practices towards crypto firms, especially regarding discussions surrounding existing rules like the CFPB Section 1033 related to open banking.
JPMorgan's pause regarding Gemini highlights the tensions between traditional banks and crypto firms while raising significant questions about access to financial services for cryptocurrency platforms.
