Bitcoin News Today: JPMorgan Suspends Gemini Onboarding Amid Data Fee Criticism

JPMorgan Chase & Co. has suspended Gemini’s re-onboarding process following public criticism from the cryptocurrency exchange’s co-founder, Tyler Winklevoss, over the bank’s new data access fees for fintech partners. The move, disclosed in recent reports, comes amid heightened regulatory scrutiny of digital asset firms and growing tensions between traditional financial institutions and the crypto industry [1]. Gemini, which previously lost JPMorgan banking services during a 2021 regulatory crackdown dubbed “Operation Choke Point 2.0,” is now seeking to re-establish its banking relationships as it prepares for a confidential IPO filing and expands into tokenized stock offerings [2].

The dispute centers on JPMorgan’s policy requiring fintech platforms to pay a licensing fee for accessing customer banking data. The bank processes nearly 2 billion monthly third-party data requests, many of which, according to JPMorgan, are unrelated to actual customer activity. The fees, which Winklevows labeled “egregious regulatory capture,” are framed by the bank as a measure to combat system misuse and enhance consumer protection [3]. However, critics argue the policy disproportionately impacts crypto platforms and fintechs, which rely on seamless data integration to operate. Winklevoss publicly condemned the fees on social media, warning they could “bankrupt fintechs” that enable users to link bank accounts with crypto services [4].

The timing of the suspension has fueled speculation about retaliatory motives. JPMorgan did not directly address Gemini’s situation in its public statements but defended the fees as necessary to manage the scale of data requests and reduce risks. Analysts suggest the decision reflects broader challenges in balancing innovation with compliance in an evolving regulatory landscape [5]. The U.S. Securities and Exchange Commission’s (SEC) intensified oversight of crypto exchanges has further complicated the environment, with banks increasingly adopting cautious stances toward high-risk clients.

For Gemini, the setback disrupts its strategic growth plans. The exchange’s recent IPO filing and expansion into institutional services depend on stable banking relationships, yet JPMorgan’s suspension underscores the fragility of partnerships between crypto firms and legacy institutions. Winklevows’s criticism has also reignited debates about equitable access to financial infrastructure, with industry advocates arguing that opaque fee structures and restrictive policies stifle competition.

The incident highlights systemic tensions between banks and crypto platforms. Financial institutions face mounting pressure to comply with stringent regulations while navigating the complexities of serving digital asset clients. Meanwhile, crypto firms contend with barriers to entry, including data access costs and service restrictions, which critics claim undermine innovation. As the industry matures, the ability of banks to balance compliance with support for emerging technologies will likely shape the trajectory of digital assets in the traditional financial system [6].

Sources:

[1] [Tyler Winklevoss Calls Out JPMorgan for Blocking Gemini](https://coincentral.com/tyler-winklevoss-calls-out-jpmorgan-for-blocking-gemini-exchange-over-tweet/)

[2] [JPMorgan Suspends Gemini Onboarding After $2 Billion Data Fee Criticism](https://coinmarketcap.com/community/articles/688778f83c1f324d51532f2d/)

[3] [JPM News Today | Why did JPMorgan Chase & Co. stock...](https://www.marketbeat.com/stocks/NYSE/JPM/news/)

[4] [Crypto Weekly Recap: Strategy Adds $740M to Bitcoin Holdings](https://www.ainvest.com/news/crypto-weekly-recap-strategy-adds-740m-bitcoin-holdings-coindcx-launches-bounty-india-tightens-tax-enforcement-2507/)

[5] [Bitcoin hits new highs, cloud mining popularity soars - SWL...](https://coincentral.com/bitcoin-hits-new-highs-cloud-mining-popularity-soars-swl-miner-becomes-a-new-trend/)

[6] [Coin Chapter (@coinchapter)](https://www.instagram.com/coinchapter/?hl=en)