Major U.S. Banks Push "Chokepoint 3.0" to Halt Crypto Growth

Major U.S. banks are reportedly intensifying efforts to limit consumer access to crypto and fintech platforms through a strategy dubbed “Chokepoint 3.0” [1]. This initiative involves imposing high fees and restricting access to financial services, according to Alex Rampell of Andreessen Horowitz, who has warned that the tactics are anti-competitive and threaten innovation in the fintech and crypto sectors [1]. The alleged campaign has emerged amid reduced federal regulatory pressure under President Donald Trump, with banks reportedly taking unilateral action to curb the influence of decentralized financial platforms [1].

Rampell highlights how banks are leveraging excessive transaction fees to discourage users from transferring funds to crypto platforms like Coinbase or Robinhood [1]. For example, a $10 fee to transfer $100 could deter users from using these services altogether [1]. These fee structures, he argues, are not designed to generate revenue but to dissuade customers from exploring alternatives outside traditional banking [1]. Additionally, some banks are reportedly preventing users from linking their accounts to crypto and fintech apps, effectively trapping consumers within legacy banking systems [1].

JPMorgan Chase has introduced new fees for data aggregators that connect fintech apps to bank accounts, a policy set to take effect later this year [1]. CEO Jamie Dimon has defended the move, asserting that third-party companies should compensate banks for access to their systems [1]. However, critics argue the fees are not driven by operational necessity but by anti-competitive motives that could increase costs for consumers and reduce access to financial tools [1].

The crypto industry has responded with concern, with Ripple CTO David Schwartz calling the strategy “rent-seeking behavior” and “a despicable evil” [1]. He argues that such practices bypass due process and involve indirect government influence that excludes certain businesses from the financial system without justification [1]. Meanwhile, tensions have escalated between JPMorgan and crypto firms. Tyler Winklevoss, co-founder of Gemini, alleged that JPMorgan Chase halted the crypto exchange’s re-onboarding process due to public criticism of the bank’s new data access policy [1]. He warned that the fee structure could force crypto-supporting fintech companies to shut down [1].

Regulatory discussions are shaping the future of data access and fee structures. The White House has expressed interest in fostering collaboration between traditional financial institutions and the crypto sector, as outlined in the “Golden Age of Crypto” report by the Digital Assets Working Group [1]. This report includes recommendations aimed at promoting crypto adoption and addressing barriers to entry [1]. The initiative has drawn attention from Wall Street firms, signaling potential institutional engagement with cryptocurrencies [1].

Rampell argues that existing legal mechanisms, such as the Dodd-Frank Act Section 1033, can be used to counter these moves [1]. He is urging the Consumer Financial Protection Bureau to enforce the provision and prevent what he views as a deliberate attempt to eliminate competition [1]. The warning underscores growing concerns over financial freedom and access in the digital economy as the clash between banks and crypto platforms intensifies [1].

Source: [1] Major U.S. Banks Now pushing "Chokepoint 3.0" to Kill... (https://coingape.com/major-u-s-banks-now-pushing-chokepoint-3-0-to-kill-crypto-a16z-partner/)