JPMorgan's Crypto Squeeze Defies U.S. Digital Asset Ambitions

JPMorgan Chase & Co. has reignited debates over crypto-related "debanking" after abruptly closing the personal accounts of Jack Mallers, CEO of Bitcoin-focused payments firm Strike, in September 2025. Mallers disclosed the move on social media, highlighting a longstanding banking relationship with JPMorgan and criticizing the lack of transparency. "J.P. Morgan Chase threw me out of the bank," he wrote, noting his father had been a private client for over 30 years according to reports. The bank cited "concerning activity" during routine monitoring but provided no further details.

The incident has drawn sharp criticism from crypto advocates and lawmakers, who argue it reflects ongoing pressures on traditional banks to restrict services for digital-asset businesses. Senator Cynthia Lummis, a vocal pro-crypto figure, labeled the action as evidence that "Operation Chokepoint 2.0" remains active. The term refers to allegations that federal regulators pressured banks to deny services to crypto firms under the Biden administration. Despite an August 2025 executive order by President Donald Trump banning such practices, JPMorgan's actions have fueled skepticism about whether the policy has been effectively enforced.

JPMorgan's decision has also clashed with broader efforts by the Trump administration to position the U.S. as a global leader in digital assets. The bank's research division issued a warning that Strategy (MSTR), a company holding 650,000 Bitcoin, could face forced outflows of up to $8.8 billion if MSCI Inc. excludes digital-asset treasury firms from its indices by early 2026. This prompted calls for a boycott of JPMorgan, with figures like Grant Cardone and Max Keiser urging customers to close accounts.

Industry leaders have criticized the bank for deepening tensions between traditional finance and crypto. Jason Allegrante, Chief Legal and Compliance Officer at Fireblocks, warned that restricting access to banking services risks pushing crypto activity offshore. "Trying to choke off crypto won't make it go away," he said, emphasizing that such actions could undermine U.S. competitiveness in the sector.

The controversy comes as JPMorgan expands its private credit business, recently allocating an additional $50 billion to the sector. Kevin Foley, the bank's global head of capital markets, highlighted its "vast origination platform" as a competitive advantage. However, the account closure and research note have overshadowed these moves, with critics arguing JPMorgan is inconsistent in its approach to digital assets.

JPMorgan has not publicly commented on the account closures or the boycott calls. The bank's shares remained relatively stable in pre-market trading, but reputational damage could escalate if the backlash intensifies. The incident underscores the fragile relationship between major financial institutions and the crypto industry, as regulatory uncertainty and political tensions persist.