Chokepoint 3.0? a16z Says Big Banks Are Quietly Strangling Crypto and Fintech Rivals

• Alex Rampell of a16z warns that major U.S. banks are engaging in “Operation Chokepoint 3.0.”
• He alleged a unilateral blocking of access to fintech and crypto platforms through high fees, data restrictions, and app blocking.
• He argues this new wave of anti-competitive behavior isn’t about profit, but about stifling competition.

Andreessen Horowitz (a16z) partner Alex Rampell is sounding the alarm on what he’s calling “Operation Chokepoint 3.0” for the crypto industry.

This is a new wave of anti-competition tactics allegedly being deployed by major U.S. banks to suppress the rise of fintech and crypto platforms. According to Rampell, while government-led pressure to de-bank crypto firms has eased under the new administration, traditional financial institutions are now taking matters into their own hands.

From Government Pressure to Private Sabotage

The original “Operation Choke Point 2.0” under the Biden administration saw increased regulatory scrutiny that made it harder for crypto companies to get banking services. It made it harder for them to access banking services. Meanwhile, that era is over with the new administration under Donald Trump.

What comes next, Rampell warns, could be even more insidious. He argues that banks are now acting on their own to restrict competition through high fees, limited access to customer data, and in some cases, directly blocking apps.

“This isn’t about a new revenue stream,” Rampell writes. “It’s about strangling competition.”

Related: ConsenSys Survives Two Strikes from Operation Chokepoint, CEO Joe Lubin Shares Insights

Using High Fees to Price Out Competitors

Rampell points to major institutions like JPMorgan Chase as examples of banks charging exorbitant fees for even basic actions like transferring funds to crypto and fintech platforms, or accessing financial data through APIs. 

In some cases, users are effectively being charged for information as basic as their account number and routing code, data already printed on every check.

He warns that if it costs $10 to move $100 into a Coinbase or Robinhood account, many consumers will simply stay put. In effect, this limits their access to potentially better rates, investment options, or financial tools.

App Blocking and the End of Consumer Choice?

Even more concerning, Rampell says, is that some banks may be blocking consumers from linking certain fintech or crypto apps to their bank accounts entirely. If this behavior becomes widespread, consumers could lose access to many of the modern financial apps they rely on.

“Many banks have hostages, not customers,” Rampell says. He suggests that most people don’t have a realistic way to switch banks, especially when all major players follow the same practices.

Legal Solution Already Exists

Rampell calls on regulators, specifically the Consumer Financial Protection Bureau (CFPB), to enforce Section 1033 of the Dodd-Frank Act, which guarantees consumers access to their own financial data.

“We don’t need a new law,” Rampell writes. “We just need the administration to prevent this callous and manipulative attempt to kill competition and consumer choice.”

Essentially, a16z’s warning highlights a brewing war between legacy finance and the next generation of financial infrastructure. It highlights the need for regulation that maintains a competitive financial ecosystem for crypto users.