Big Banks Implement 'Operation Chokepoint 3.0' to Strangle Crypto and Fintech Apps

Big banks are charging high fees to access account data or move money to services like Coinbase or Robinhood, which could be seen as "Operation Chokepoint 3.0." This move aims to strangle the competition from fintech and crypto apps. JPMorgan Chase has been singled out for charging fees for access to basic information like routing and account numbers, which could deter users and reduce competition.

In a recent development, major banks are implementing high fees for accessing account data and moving money to crypto and fintech platforms, a strategy dubbed "Operation Chokepoint 3.0." This move aims to limit competition from fintech and crypto apps, with JPMorgan Chase being a notable example.

Alex Rampell, General Partner at venture capital firm Andreessen Horowitz (a16z), has warned about this new approach, which involves charging excessive fees for data access and movement. Rampell argues that such tactics could make transferring funds to crypto and fintech apps more costly, potentially deterring users and reducing competition [2].

JPMorgan Chase, one of the largest U.S. banks, has been singled out for implementing these fees. The bank is charging for access to basic information like routing and account numbers, which could significantly impact the operations of fintech and crypto companies that rely on this data for transactions. According to Rampell, if it suddenly costs $10 to move $100 into a Coinbase or Robinhood account, fewer people might use these services [2].

The new initiative could result in a cut in the participation rate of platforms like PayPal’s Venmo, crypto wallets such as Coinbase, and retail trading brokerages such as Robinhood. Rampell has called on the administration to prevent such manipulative approaches that aim to end competitive industries [2].

Rampell’s warnings echo those of Gemini co-founder Tyler Winklevoss, who said JPMorgan’s data access fees could "bankrupt" fintech platforms. JPMorgan has not directly addressed the criticism but has stated that the fees aim to curb misuse of customer data [2].

References:

[1] https://www.mitrade.com/cn/insights/news/live-news/article-3-1008188-20250804
[2] https://finance.yahoo.com/news/chokepoint-3-0-arrived-a16z-180047132.html