Mystery Deepens as JPMorgan Shuts Crypto Accounts Despite Trump's Ban

JPMorgan Chase's decision to close the personal bank accounts of Strike CEO Jack Mallers has reignited scrutiny over whether U.S. banks are continuing to restrict access to crypto-linked individuals, despite an executive order from President Donald Trump banning such practices according to reports. The move, disclosed by Mallers in September, has sparked industry-wide questions about how financial institutions are interpreting federal directives and whether concerns about "debanking" in the digital-asset sector remain unresolved.

According to a letter Mallers received from JPMorgan, the closure was justified by unspecified "concerning activity" identified during routine monitoring. The bank cited obligations under the Bank Secrecy Act but provided no further details. Mallers, who has publicly criticized the decision, noted that the bank repeatedly declined to explain its reasoning, stating, "They weren't allowed to tell me." His comments echo broader industry anxieties about politically influenced banking practices, a term used to describe purportedly politically motivated pressures on banks during the prior administration.

The closure appears to contradict Trump's August executive order, which explicitly prohibits financial institutions from denying services to crypto-related initiatives. The administration framed the directive as a safeguard against discriminatory practices, yet Mallers' case highlights lingering uncertainties about its enforcement. Jason Allegrante, Chief Legal and Compliance Officer at Fireblocks, warned that such restrictions risk pushing crypto activity outside U.S. borders and questioned the fairness of leaving decisions to regulatory discretion.

This incident follows earlier reports of debanking tied to Trump and his family. In June, the alleged that major banks had denied him services due to political factors, while his son Eric disclosed in May that several institutions closed accounts during Trump's first term. These precedents underscore broader tensions between political influence and financial access, particularly in sectors like crypto, which remain heavily scrutinized.

JPMorgan's actions also occur amid a backdrop of robust financial performance. The bank reported a 16% year-over-year increase in diluted earnings per share for Q3 2025, with return on equity and capital efficiency metrics showing modest improvement. However, its profitability and capital efficiency in the Commercial & Investment Bank segment - driven by a 14% rise in investment banking revenue - suggest the institution remains focused on traditional financial activities.

As the crypto sector continues to grapple with regulatory and institutional challenges, Mallers' case serves as a focal point for debates over the balance between compliance and innovation. With no clear resolution in sight, the incident raises critical questions about the future of financial access for digital-asset businesses and whether federal safeguards will translate into tangible protections.