Key Takeaways
What triggered the latest crypto debanking controversy?
Strike CEO revealed that JPMorgan Chase blocked his account and restricted customer deposits into Strike.
How did the community react?
The community slammed JPMorgan. But the bank had not issued any statement on the issue as of the time of writing.
Crypto debanking is back in the headlines, this time throwing JPMorgan Chase under scrutiny.
Jack Mallers, CEO of Strike, a U.S.-based Bitcoin [BTC]-focused payment platform, decried that JPMorgan kicked him out of the bank.
He added that the bank blocked some customers from depositing with Strike, claiming that the firm was involved in “known fraudulent activities.”
Source: X
Senator Lummis slams JPMorgan
Reacting to the alleged banking restriction, pro-Bitcoin Senator Cynthia Lummis slammed JPMorgan’s actions. She warned that such debanking would push digital assets overseas and added,
“Operation Chokepoint 2.0 regrettably lives on. It’s past time we put it to rest to make America the digital asset capital of the world.”
The systematic and targeted crypto debanking was widespread during the Biden era, a phenomenon the industry dubbed “Chokepoint 2.0.”
Many U.S. banks viewed crypto firms and investors as reputational risks due to the prevailing political climate and regulatory pressure at the time.
When the tides shifted after the pro-crypto Trump administration took office in 2025, a formal inquiry was quickly established to address the issue.
By August, President Donald Trump signed an executive order advocating for fair banking to remedy the situation. The Fed and other regulators were ordered to remove “reputational risk” and others as part of the solution.
The White House, at that time, added that the digital assets industry has been the target of “unfair debanking initiatives.”
Unfortunately, three months after the order, the same issue is surfacing again.
Divided opinions on crypto risks
Supporters of the JPMorgan move, such as Steve Hanke, claimed that $28 billion has been laundered by criminal rings through cryptocurrency since 2024.
However, John Deaton, a former U.S. Senate aspirant, clapped back, noting that JPMorgan has paid $40 billion in fines for illicit activity since 2000. He added,
“Since 2000 JPMorgan alone has paid $40 billion in fines for illicit activity – significantly less than the total fined all crypto companies.”
Interestingly, in August, even President Trump claimed that JPMorgan and Bank of America rejected his deposits. According to him, this supported his belief that the debanking was due to politics.
That being said, it remains to be seen whether the friction between the crypto industry and banks will be fully resolved.