- JPMorgan halts Gemini re-onboarding after criticism.
- Potential fiat access disruption for Gemini users.
- Industry debate over open banking regulations grows.
Tyler Winklevoss claimed on X that JPMorgan Chase halted Gemini’s re-onboarding due to his critique of the bank’s fintech policies.
This move highlights tensions between traditional banks and crypto firms, potentially complicating access to financial services for crypto platforms.
Tyler Winklevoss’ Criticism
Tyler Winklevoss, co-founder of Gemini, claims that JPMorgan Chase paused Gemini’s re-onboarding as a banking client in response to his criticism. He expressed concerns over JPMorgan’s stance on 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.”
Winklevoss highly criticized JPMorgan’s plans regarding fintech data access fees, particularly affecting banks like Gemini. He argues the move undermines open banking initiatives, implicating CEO Jamie Dimon as responsible.
Financial Impact on Gemini
The financial impact on Gemini could be significant if the pause is prolonged, affecting fiat conversion for cryptocurrencies. This includes Bitcoin and Ethereum, potentially disrupting liquidity and transaction settlements for US users.
The situation has sparked discussions about the implications of banks limiting crypto company access and has drawn attention to potential regulatory interventions. Social media activity highlights the contentious nature of current banking practices.
Historical Context and Potential Outcomes
Past incidents, such as Operation Choke Point 2.0, are relevant for understanding this context. Historical trends show banks restricting services to crypto businesses, heightening transaction friction.
Potential outcomes include tighter regulatory scrutiny on banking practices for crypto firms. Existing rules like the CFPB Section 1033 concerning open banking are pivotal points of debate in the industry.
