JPMorgan Accused of Crypto-Friendly Banking Practices Backlash

JPMorgan Chase is under scrutiny from Andreessen Horowitz’s a16z for allegedly implementing restrictive banking practices that could severely impact the crypto and fintech sectors. In a July 2025 newsletter, a16z flagged JPMorgan as a central player in what it terms “Chokepoint 3.0” — a strategy that involves imposing high fees and selectively withdrawing support for crypto platforms. These actions, if widespread, could limit access to critical banking services for crypto firms and disrupt market liquidity [1].

The term “Chokepoint 3.0” draws parallels to previous government-led initiatives aimed at limiting crypto services. Under the Biden administration, Operation Chokepoint 2.0 sought to cut off access to financial services for crypto platforms, a period a16z claims has now given way to a more market-driven but equally problematic phase. Rather than government-led de-risking, private institutions like JPMorgan are now allegedly setting the bar with prohibitive fees and selective support for certain crypto applications. This shift, according to a16z, could lead to increased operational costs for crypto startups, thereby stifling innovation and expansion [1].

The potential consequences extend beyond mere financial burdens. By making crypto services more expensive and less accessible, such banking strategies could drive users toward less-regulated alternatives or stablecoins, further fragmenting the market. The fintech team at a16z warns that this is a continuation of a pattern that began with the de-risking of crypto exchanges in 2017 and the broader “Chokepoint” efforts between 2013 and 2015. These earlier measures led to reduced liquidity and instability, particularly for major assets like Bitcoin (BTC) and Ethereum (ETH) [1].

Industry experts from Kanalcoin have echoed these concerns, highlighting that the current banking dynamics could have long-term adverse effects on the crypto market. They suggest that restrictive financial access often results in liquidity challenges and a shift in user behavior, where alternative financial infrastructure gains traction. This could lead to a more fragmented and less resilient market ecosystem [1].

The situation underscores a growing tension between traditional financial institutions and the crypto industry. As JPMorgan and other banks tighten their grip on financial services, the crypto sector faces a new wave of operational constraints. These developments are being closely watched by regulators, investors, and startups alike, as they may shape the future landscape of digital finance and the degree of access to traditional banking systems for emerging technologies.

Source: [1] [JPMorgan Faces Crypto Banking Fees Accusations by a16z](https://coinmarketcap.com/community/articles/688e56c68cb1bc072806ff95/)