JPMorgan's Crackdown on Crypto Challenges U.S. Hopes for Digital Assets
Bitget-RWA2025/11/26 03:38
By: Bitget-RWA
- JPMorgan closed Jack Mallers' accounts at Strike, sparking debates over crypto "debanking" and regulatory pressures on banks . - Pro-crypto lawmakers accused the bank of enforcing "Operation Chokepoint 2.0," despite Trump's 2025 executive order banning such practices. - Industry leaders warned restricted banking access risks pushing crypto offshore, undermining U.S. competitiveness in digital assets. - JPMorgan's research warning about MSTR's potential $8.8B outflows intensified calls for a customer boyc
JPMorgan Chase & Co. has once again sparked controversy over the issue of "debanking" in the crypto sector after
unexpectedly shutting down the personal bank accounts
belonging to Jack Mallers, CEO of the Bitcoin-centric payments company Strike, in September 2025. Mallers revealed the closure on social media, pointing out his long-standing relationship with JPMorgan
and criticizing the opaque process. "J.P. Morgan Chase
kicked me out of the bank," he stated, mentioning that his father had been a private client for more than three decades according to reports
. The bank referenced "concerning activity" found during standard reviews but did not elaborate further
. This episode has drawn strong backlash from both crypto supporters and lawmakers, who claim it highlights the ongoing pressure on established banks to limit services for digital asset companies.
Senator Cynthia Lummis
, a prominent advocate for crypto, described the event as proof that "Operation Chokepoint 2.0" is still in effect. This phrase refers to accusations that federal authorities have urged banks to cut ties with crypto businesses during the Biden administration. Even after President Donald Trump signed an executive order in August 2025 to prohibit such actions, JPMorgan's conduct has raised doubts
about whether the ban is being properly enforced. JPMorgan's move also appears to conflict with the Trump administration's broader push to establish the U.S. as a leader in digital assets.
The bank's research team issued a caution
that Strategy (MSTR), which holds 650,000 Bitcoin
, might be forced to liquidate up to $8.8 billion if MSCI Inc. removes digital-asset treasury companies from its indexes by early 2026. This has led to calls for a boycott of JPMorgan, with figures such as Grant Cardone and Max Keiser
encouraging clients to withdraw their funds. Industry experts have condemned the bank for worsening the divide between traditional finance and the crypto world.
Jason Allegrante, Chief Legal and Compliance Officer
at Fireblocks, cautioned that limiting banking access could drive crypto activities overseas. "Trying to suffocate crypto won't make it disappear," he commented, stressing that such measures
may weaken America's position in the industry. The dispute arises as
JPMorgan grows its private credit operations
, having recently committed an extra $50 billion to the field. Kevin Foley, the bank's global head
of capital markets, pointed to its "extensive origination platform" as a key strength. Nevertheless, the account shutdown and research report have overshadowed these developments, with critics accusing JPMorgan of inconsistency in its digital asset strategy. JPMorgan has yet to
issue a public statement regarding the account closures
or the boycott movement. The bank's stock price remained steady in pre-market trading, but its reputation could suffer further
if the criticism grows. This situation highlights the delicate relationship between large banks and the crypto sector, as regulatory ambiguity and political friction
continue. Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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