TLDR
- Senator Cynthia Lummis criticized JPMorgan for its anti-crypto stance and called for an end to Operation Chokepoint 2.0.
- Lummis argued that JPMorgan’s actions damage public trust in traditional banks and hinder the growth of digital assets in the U.S.
- The dispute started when JPMorgan closed the accounts of Jack Mallers, CEO of the Bitcoin payment firm Strike, without a clear reason.
- Operation Chokepoint 2.0 aims to prevent blockchain firms from accessing banking services, which critics argue harms the crypto industry.
- Lummis expressed concern that the U.S. risks losing digital finance leadership by pushing innovation out of the country.
U.S. Senator Cynthia Lummis has sharply criticized JPMorgan for its stance against cryptocurrency. She called for an end to Operation Chokepoint 2.0, a program aimed at blocking firms in the blockchain space from accessing banking services. Lummis argued that the bank’s actions harm public trust in traditional banking and hinder the growth of digital assets in the United States.
The dispute began when JPMorgan closed the accounts of Jack Mallers, the CEO of the Bitcoin payment firm Strike. Mallers, a vocal advocate for cryptocurrencies, criticized JPMorgan for failing to provide a clear reason for the closure. JPMorgan cited “concerning activity” discovered during routine reviews but did not offer further details.
Operation Chokepoint 2.0 Targets Crypto Industry
Operation Chokepoint 2.0 is a program that seeks to prevent firms in the cryptocurrency sector from accessing banking services. The initiative follows the U.S. Department of Justice’s Operation Chokepoint, which was launched in 2013. Critics argue that this effort, although officially concluded under the Trump administration, continues to negatively affect the crypto industry.
Lummis expressed concerns that such programs push digital asset firms to other countries with more favorable regulations.
“We are pushing innovation out of the U.S. with policies like this,” she said.
Her comments reflect growing frustration among lawmakers who believe the U.S. risks losing its leadership role in digital finance.
JPMorgan’s Evolving Relationship with Cryptocurrency
JPMorgan’s relationship with cryptocurrencies has evolved. The bank has launched its own stablecoin, JPM Coin, and has explored blockchain technology. However, JPMorgan remains cautious about fully embracing cryptocurrency as an asset class.
Despite these efforts, JPMorgan continues to express concerns over the risks associated with digital assets. Lummis suggested that the bank’s stance needs to adapt to meet the growing demand for digital assets in the financial sector.
“The traditional financial system must recognize the role of digital assets,” Lummis added.
The closure of Mallers’ accounts highlights the tension between cryptocurrency supporters and traditional financial institutions. While JPMorgan’s policies remain a point of contention, Lummis believes that change is necessary for the future of U.S. digital finance.
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