JPMorgan Suspends Gemini Onboarding Following Winklevoss Criticism of Data Fees

JPMorgan Chase & Co. has suspended the re-onboarding process for cryptocurrency exchange Gemini following public criticism from the platform’s co-founder, Tyler Winklevoss, over the bank’s new data access fees targeting fintech companies. The decision, which halts Gemini’s efforts to re-establish banking services with JPMorgan, reignites tensions between traditional financial institutions and the crypto sector amid regulatory scrutiny [1].

The dispute centers on JPMorgan’s policy of charging fintech platforms for access to customer banking data. These fees, which Winklevoss described as “egregious regulatory capture,” are designed to curb the misuse of banking infrastructure by third-party services. JPMorgan cited the need to address the high volume of data requests—nearly two billion monthly—as most are unrelated to actual customer activity, arguing the charges enhance consumer protection and reduce system abuse [1]. Winklevoss countered that the fees disproportionately harm smaller firms and crypto platforms, warning they could “bankrupt fintechs” that facilitate digital asset transactions by linking users’ bank accounts [1].

Gemini’s onboarding suspension marks a setback for the exchange, which had previously lost JPMorgan’s banking services during heightened regulatory scrutiny of crypto firms in 2021. That period, dubbed “Operation Choke Point 2.0,” saw banks withdraw services from crypto companies under pressure from regulators, a move critics argued stifled innovation and unfairly isolated the industry. Gemini is now navigating a similar challenge while preparing for a confidential initial public offering (IPO), aiming to expand its services to include tokenized stock offerings [1].

JPMorgan has not directly addressed Gemini’s situation but has defended its data access policies in past statements, emphasizing their alignment with industry standards. The bank’s actions, however, raise questions about whether the suspension was a targeted response to Winklevoss’s criticism. Analysts note that while banks are increasingly cautious about serving crypto clients amid regulatory uncertainties, such decisions risk alienating key players in the digital asset ecosystem [2].

The incident underscores broader industry tensions between legacy banks and crypto firms, which often face skepticism from regulators and traditional financial systems. For Gemini, the disruption highlights the vulnerability of crypto exchanges reliant on centralized banking infrastructure, where even minor service restrictions can disrupt operations. For JPMorgan, the episode reinforces perceptions of the bank as an industry gatekeeper, potentially complicating its expansion into crypto-related services [2].

Industry observers are monitoring whether this dispute will prompt regulatory intervention or force banks to reassess their approach to crypto partnerships. The outcome could influence how financial institutions navigate similar conflicts as the sector moves toward greater institutional adoption. For now, the situation remains a focal point for debates about equitable access to banking services and the role of traditional institutions in shaping the future of finance [2].

Sources:

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

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