JPMorgan's Gemini Banking Halt Sparks Data Access Clash
Wall Street titan JPMorgan has paused its efforts to re-establish banking relationships with Gemini, a major US-based crypto exchange, amidst rising tensions over financial data access.
Winklevoss Blasts JPMorgan After Banking Reversal
On July 25, Gemini co-founder Tyler Winklevoss revealed that JPMorgan had scrapped plans to reintegrate the platform. This follows Gemini's earlier offboarding during what crypto advocates have called “Operation Chokepoint 2.0,” when regulatory pressures led several banks to cut ties with crypto firms, citing industry risks.
However, this recent pause appears linked to a dispute over financial data rights. Winklevoss has openly criticized JPMorgan’s initiative to charge fintech companies for accessing customer banking data. He contends that this move aims to undermine startups dependent on such access for providing seamless financial services.
Winklevoss recently called out JPMorgan and other banks for seeking to impose fees on fintechs that connect to user bank accounts via tools like Plaid. These tools allow users to access and share their banking data, facilitating fund transfers to crypto exchanges and related platforms.
“[JPMorgan] want us to stay silent while they quietly try to take away your right to access YOUR banking data for free through third-party fintechs like,” Winklevoss said.
According to Winklevoss, JPMorgan’s strategy aims to stifle user-friendly financial innovations by restricting access to personal financial data. He suggested that his outspoken criticism may have triggered the bank’s latest decision to sever ties with Gemini.
Despite this setback, the Gemini CEO affirmed his commitment to advocacy.
“Sorry Jamie Dimon, we’re not going to stay silent. We will continue to call out this anti-competitive, rent-seeking behavior and immoral attempt to bankrupt fintech and crypto companies. We will never stop fighting for what is right,” he stated.
JPMorgan’s action has sparked scrutiny, viewed by many as part of an ongoing conflict between traditional financial systems and the evolution of open systems.
Lily Liu, President of the Solana Foundation, reinforced her long-held belief in the resilience of open systems, expressing confidence in their eventual dominance in the digital realm.
“The ‘market’ the ‘user base’ – however one wants to put it – of humans on the internet and their assets is larger than any company/country or feasible coalition of companies/countries can muster,” she stated.
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