- JP Morgan has paused its re-onboarding of Gemini crypto exchange following the escalation of tensions around open banking, which allows free access to consumer financial information.
- Gemini co-founder Tyler Winklevoss revealed that Gemini dropped them during the concerted banking assault on crypto called Operation Chokepoint 2.0.
- Winklevoss reiterates that Gemini will continue to speak up and fight against the anti-competitive behavior intended to stifle fintech and crypto advancement.
American multinational bank JP Morgan has reportedly halted its process of re-onboarding the Gemini crypto exchange as a customer. According to Gemini co-founder Tyler Winklevoss, the bank backed away after he had previously criticized Wall Street’s attempt to repeal the Open Banking Rule in a tweet.
JPMorgan Blocks Gemini As Open Banking Clashes Emerge
Winklevoss revealed that JP Morgan dropped them the first time due to Operation Chokepoint 2.0, an organized attempt by regulators and US banks to block crypto and other select industries from accessing banking services, allegedly to suppress innovation and retain dominance.
The Wall Street giant has once again halted its plans to re-accept Gemini as a customer, a decision which the crypto exchange’s co-founder attributes to a tweet he made calling out banks for their efforts to block access to consumer data and charging them and fintechs exorbitant fees to access such information.
“JPMorgan and the banksters are trying to kill fintech and crypto companies. They want to take away your right to access your banking data for FREE via third-party apps like Plaid and instead charge you and fintechs exorbitant fees to access your data,” wrote Winklevoss.
By all indications, Wall Street wants fintechs to remain silent while they prevent consumer access to their data through third parties. However, the Gemini boss says they won’t remain silent about banking’s anti-innovative move.
“We will continue to call out this anti-competitive, rent-seeking behavior and immoral attempt to bankrupt fintech and crypto companies,” said Winklevoss. “We will never stop fighting for what is right!”
What’s the Latest With The Open Banking Rule?
The “Open Banking Rule” under Section 1033 of the Consumer Financial Protection Act was finalized in 2024 to allow consumer access to banking information through third-party apps. However, banks unanimously sued the Consumer Financial Protection Bureau in court, seeking to end the rule.
If Open Banking is rescinded, fintechs will not be able to access customer info easily, plus they will pay huge fines for such data. Consequently, they will be unable to retain their customers and possibly fizzle out in the financial market.
Last week, a coalition of blockchain and trade groups reached out to President Trump over the Open Banking Rule, asking for his administration’s intervention in the Wall Street threat to America’s “innovation technology.”
The letter highlighted the importance of the rule in facilitating the Trump-led government’s advancement of crypto and financial technology and how its rescission could roll back all the progress made in the past six months.
Based on the lineup of events surrounding the case, July 29 appears to be the deadline for filing briefs on the matter. The groups have called on the Trump administration to file a brief by the deadline, upholding the Open Banking Rule.
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