JPMorgan Halts New Gemini Clients Over Data Access Fee Dispute

JPMorgan Chase & Co. has suspended the onboarding of new clients for Gemini Trust Co. after the cryptocurrency exchange’s co-founder, Tyler Winklevoss, publicly criticized the bank’s new data access fees as anti-competitive. Winklevoss alleged JPMorgan retaliated against Gemini by halting its re-onboarding process following his vocal opposition to the fees, which he argued would “bankrupt fintechs” reliant on linking user accounts to crypto platforms [1]. The move, confirmed in late July 2025, affects new account creation but leaves existing Gemini accounts and transactions operational. Neither party has commented further [1].

The dispute centers on JPMorgan’s policy of charging fintech companies for access to customer banking data via aggregators like Plaid. Winklevoss framed the fees as a barrier for crypto firms, particularly those facilitating fiat-to-crypto conversions. He cited Section 1033 of the Consumer Financial Protection Act, which mandates free data sharing for fintechs, to challenge the policy. JPMorgan, however, defended the fees as necessary for managing risk and ensuring cost predictability in an industry marked by volatility and regulatory uncertainty [1].

The broader implications of the conflict highlight growing tensions between traditional banking systems and crypto-native firms. JPMorgan’s strategy aligns with a risk-averse approach among major banks, which have increasingly distanced themselves from crypto services amid regulatory scrutiny. This trend follows Operation ChokePoint 2.0, a regulatory campaign that previously forced JPMorgan to cut ties with Gemini and other crypto firms. The current dispute could accelerate the adoption of in-house solutions by crypto companies to bypass third-party data providers, according to analysts [1].

Industry stakeholders warn that JPMorgan’s fees could cripple crypto operations. Executives at fintech companies estimate the costs may exceed their entire 10-year revenue histories, threatening the viability of services that enable crypto purchases. Ten trade associations, including the Blockchain Association, have urged President Trump to intervene, labeling the fees a “punitive tax” on financial data access [1]. Meanwhile, the timing of the dispute coincides with legal challenges to the CFPB’s Section 1033 rule, which requires banks to share customer data freely. The CFPB, under the Trump administration, has sought to vacate the rule entirely [1].

The Gemini incident reflects a wider pattern of banking restrictions reshaping crypto market access. Over the past year, major crypto-friendly banks like Silvergate and Signature Bank have shut down their digital asset divisions under regulatory pressure, leaving Cross River Bank as one of the few remaining bridges to traditional finance. The concentration of banking services creates systemic risks for the crypto ecosystem. Federal regulators have also discouraged banks from engaging with crypto firms due to “reputational risk,” as revealed in 790 pages of documents released by the FDIC in February [1].

For investors, the conflict underscores the fragility of partnerships between legacy banking systems and emerging crypto infrastructure. JPMorgan’s decision, while unlikely to disrupt its core operations, could delay Gemini’s institutional growth plans. The resolution of this dispute may set a precedent for future negotiations on data pricing and governance, influencing how financial institutions balance innovation and risk. If data-fee disputes become industry-wide, higher operational costs could hinder user onboarding and liquidity on exchanges like Gemini and Coinbase, potentially driving firms toward decentralized finance (DeFi) to bypass traditional gatekeepers [1].

Source: [1] [Navigating the Volatile Crossroads: Investment Risks and Opportunities in North Africa and the Middle East Amid Geopolitical Turmoil] [https://www.ainvest.com/news/navigating-volatile-crossroads-investment-risks-opportunities-north-africa-middle-east-geopolitical-turmoil-2507/]