Bitcoin News Today: JPMorgan's Strike Closure Contradicts Trump's Anti-Debanking Order

JPMorgan Chase's abrupt closure of Strike CEO Jack Mallers' accounts in September has reignited debates over "debanking" in the cryptocurrency sector, with critics arguing the move contradicts recent executive orders aimed at curbing such practices. Mallers, whose firm facilitates Bitcoin-based payments, revealed the termination via social media, stating JPMorgan provided no specific reason other than citing "concerning activity" during routine monitoring. The bank's letter also warned it might be unable to open future accounts for Mallers, referencing obligations under the Bank Secrecy Act.

The incident has drawn sharp scrutiny amid President Donald Trump's August executive order, which explicitly prohibited financial institutions from cutting off services to crypto-related businesses. The order was framed as a direct response to allegations of "Operation Chokepoint 2.0," a term used by industry leaders to describe purported Biden-era efforts to pressure banks into denying services to crypto entities. Trump's Working Group on Digital Asset Markets had previously claimed the policy was "ended once and for all" in July, but Mallers' experience has fueled skepticism about whether such directives are being enforced consistently.

Mallers emphasized the irony of the situation, noting his father had maintained a private client relationship with JPMorgan for over 30 years. "Every time I asked them why, they said the same thing: 'We aren't allowed to tell you,'" he wrote, highlighting the lack of transparency. The bank's refusal to elaborate has led to speculation about regulatory overreach, with Tether's Strategic Advisor Bo Hines publicly questioning whether the alleged Biden-era campaign persists: "Hey Chase... you guys know Operation Choke Point is over, right? Just checking," he tweeted as reported.

Industry experts have framed the incident as a broader challenge for crypto adoption. Jason Allegrante, Chief Legal and Compliance Officer at Fireblocks, warned that restricting access to traditional banking "will just push crypto to thrive elsewhere and leave the US behind," arguing such actions undermine democratic financial systems. Others, like Tether's CEO Paolo Ardoino, took a more philosophical stance, stating, "Bitcoin will resist to the test of time. Those organizations that try to undermine it, will fail and become dust" as cited.

JPMorgan's decision appears at odds with its recent crypto-friendly initiatives, including plans to accept Bitcoin and Ether as loan collateral and partnerships with platforms like Coinbase. The closure has also reignited historical tensions between traditional finance and crypto, with critics noting that banks often cite anti-money laundering (AML) concerns or regulatory ambiguity to justify such actions as reported. Eric Trump, the president's son, previously revealed that major banks canceled his family's accounts during his father's first term, a development he said accelerated their embrace of digital assets.

The incident underscores the need for clearer regulatory frameworks to define the boundaries of bank-crypto interactions. Without explicit guidelines, financial institutions may continue to act on perceived risks, perpetuating a climate of uncertainty for crypto businesses. As Mallers' case illustrates, even high-profile figures with long-standing banking relationships remain vulnerable to opaque decisions that could stifle innovation or drive activity to less-regulated markets.