- Over 80 crypto-related businesses jointly urge President Trump to block anti-competitive practices by major banks.
- JPMorgan is set to implement a fee of $300 million per year in September for emerging businesses to access customers’ data.
- Market analysts have argued that traditional banks have found a new way to reintroduce Operation Chockpoint 2.0.
Gemini co-founder Tyler Winklevoss has signed a letter by the Financial Technology Association (FTA) urging President Donald Trump to support open banking. Winklevoss joined more than 80 Chief Executive Officers (CEOs) in signing the letter as major banks, led by JPMorgan Chase & Co. (NYSE: JPM), plan to implement anti-competitive measures in September 2025.
According to Winklevoss, banks should not be able to trap customers’ funds and data, since it is a basic human right. Consequently, the pro-innovation leaders urged President Trump to use executive powers to block the intended move, which may reintroduce chokepoint 2.0.
“We urge you to use the full power of your office and the broader Administration to prevent the largest institutions from raising new barriers to financial freedom. This is fundamentally about honoring the informed consent of consumers who choose to link their accounts to innovative tools that will power America’s future in digital assets, artificial intelligence, and payments innovation,” the FTA letter noted.
Understanding the Background of the FTA Letter to President Trump
Last month, a report emerged that JPMorgan plans to implement a $300 million fee per year for financial tech companies to access customers’ data. The exorbitant fee is a move by some major banks to retain their market share and ultimately limit the growth of fintech companies KES by crypto firms, artificial intelligence (AI) related companies, and digital wallets, among others.
Related: Trump Crypto Executive Orders: Kiyosaki Praises New 401(k) and Debanking Rules
According to Miranda Margowsky, a spokesperson for the FTA, JPMorgan wants to use the high fees to crush competition and cement its power in the marketplace. In its defense, JPMorgan has argued that the fees are meant to control the excessive number of times fintech companies are requesting for customers’ data.
“We receive nearly two billion monthly requests for customer data from middlemen, and more than 90 percent of those are unrelated to a customer using fintech services. The new fees will ensure that data is provided only when customers request it,” Drew Pusateri, JPMorgan’s spokesperson, noted.
Bigger Picture
The tug of war between traditional banking companies and fintech startups has negatively impacted the mainstream adoption of crypto assets. The need for open banking has been emphasized by the Trump administration to foster sustainable innovation in the blockchain and crypto space.
Meanwhile, more fintech companies – led by Circle, Paxos, and Ripple Labs – have applied for a national trust bank charter with the Office of the Comptroller of the Currency (OCC). Once approved, the crypto space will cut its heavy reliance on intermediary banks to offer seamless services.
Related: Trump White House Preps ‘Choke Point’ Killer; CZ Says It ‘Opens Banking for Crypto’
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