The contentious issue of "crypto debanking" has once again seized headlines, with financial giant JPMorgan Chase at the center of a fresh controversy. This resurgence of financial institutions restricting services for cryptocurrency businesses signals a frustrating setback for an industry that believed regulatory tides were turning in its favor, despite recent governmental efforts to foster fair banking practices.
JPMorgan Under Scrutiny
The latest outcry began when Jack Mallers, CEO of Bitcoin payment platform Strike, publicly accused JPMorgan Chase of blocking his account and preventing customer deposits, alleging involvement in "known fraudulent activities." This move immediately drew sharp criticism, notably from pro-Bitcoin Senator Cynthia Lummis. She denounced it as a continuation of "Operation Chokepoint 2.0," warning that such restrictive banking practices risk driving digital asset innovation overseas and undermining efforts to establish America as a global crypto hub.
A Persistent Problem Despite Policy Shifts
The term "Chokepoint 2.0" refers to a prior period when U.S. banks widely de-banked crypto firms, citing reputational risks and regulatory pressures. While the subsequent Trump administration in 2025 initiated a formal inquiry and signed an executive order advocating for fair banking — specifically instructing regulators to remove "reputational risk" as a justification — the current incident highlights the deep-seated nature of the problem. Just three months after the executive order aimed to curtail "unfair debanking initiatives," the crypto industry finds itself grappling with the very same challenges it sought to overcome.
The Debate Over Risk and Responsibility
This ongoing friction has reignited debates about the perceived risks of cryptocurrency versus the accountability of traditional financial institutions. Critics of the crypto industry, like Steve Hanke, point to significant figures for money laundering through digital assets. However, proponents, such as John Deaton, quickly counter by highlighting JPMorgan's own substantial record of fines for illicit activities, arguing that traditional banks often face far greater penalties than the entire crypto sector. Adding another layer of complexity, former President Trump himself alleged that JPMorgan and Bank of America had rejected his deposits, suggesting that political motivations might underpin some of these debanking decisions. The ultimate resolution of this deep-seated conflict between the digital asset world and mainstream banking remains uncertain.
