Banks Target Crypto: Is Operation Chokepoint 3.0 Here?
Industry experts are voicing concerns over alleged tactics by US banks to impede the growth of major crypto platforms like Coinbase and Robinhood.
Alex Rampell, General Partner at Andreessen Horowitz (a16z), highlighted these concerns in a recent newsletter, suggesting a deliberate effort to undermine the crypto sector.
Banks Accused of "Operation Chokepoint 3.0"
Rampell argues that banks, potentially including giants like JPMorgan, might be artificially inflating transaction fees and restricting banking access to crypto firms.
He illustrated that a $10 fee on a $100 transfer into a crypto account could deter many users.
“If it suddenly costs $10 to move $100 into a Coinbase or Robinhood account, maybe fewer people will do it. Or if it costs $10 to get a cheaper loan from a fintech, maybe you’ll be forced to take a crappier one from JPM,” he stated.
According to Rampell, banks might even prevent consumers from linking their bank accounts to crypto or fintech services, compelling them to stick with traditional financial products.
Rampell compared these actions to “Operation Chokepoint,” which aimed to limit crypto companies’ access to banking. He suggests this new initiative appears to be driven by the banks themselves.
“JPMorganChase is an $800 billion company. Make no mistake: this isn’t about a new revenue stream. It’s about strangling competition. And if they get away with this, every bank will follow,” Rampell argued.
Gemini co-founder Tyler Winklevoss has previously echoed these concerns, warning of banks actively working to undermine the crypto industry. He revealed that his criticisms led to JPMorgan halting efforts to rebuild banking ties with Gemini.
Despite these challenges, platforms like Coinbase and Robinhood are pushing forward.
Coinbase plans to introduce tokenized stocks, prediction markets, and derivatives for U.S. customers, aiming to become a comprehensive financial exchange.
Robinhood is expanding its services to over 200 tokenized stocks and ETFs across 31 European countries, offering commission-free trading and dividend support.
The regulatory environment in the US also shows signs of promise, with the Securities and Exchange Commission (SEC) recently outlining pro-crypto regulations.
These developments suggest that the crypto industry still has potential for growth, despite the ongoing headwinds from traditional financial institutions. Staying secure is key, so consider smart contract audits from firms like Codeum to safeguard your investments.
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