JPMorgan’s Crypto Crackdown: Banking Giant Slams Doors on Digital Asset Accounts

Wall Street's love-hate relationship with crypto just got more complicated.

The Banking Backlash

JPMorgan Chase is systematically closing cryptocurrency-related accounts in what industry insiders describe as a coordinated crackdown. Multiple crypto CEOs report sudden account terminations without clear explanations—just the standard 'business decision' brush-off banks love to use when they don't want to explain themselves.

The Compliance Shield

Sources suggest the moves stem from heightened regulatory scrutiny and the bank's risk-averse posture toward digital assets. Because nothing says 'financial innovation' like shutting down accounts of companies working on the next generation of financial infrastructure.

Digital Assets Push Back

Crypto firms are already adapting—shifting to smaller banks, exploring decentralized alternatives, and calling out what they see as anti-competitive behavior. The industry's response? Build faster, deploy smarter, and wait for traditional finance to realize they're fighting the inevitable.

Another day, another reminder that legacy banks would rather protect their margins than embrace the future.

Operation Choke Point, once a covert banking program in the U.S., has resurfaced as a controversial topic, especially with Trump coming into office. The program aimed at shutting down accounts tied to specific industries under scrutiny. More recently, within a year, JPMorgan has stirred up Operation Choke Point 2.0 concerns by abruptly closing the accounts of a prominent crypto CEO, raising eyebrows across the financial and crypto sectors.

JPMorgan and Cryptocurrency Dynamics

JPMorgan recently issued a negative rating for Strategy, which has amplified the motivation for short positions. Although some speculated that JPMorgan shorted MSTR, evidence suggests that analyst recommendations on short selling against the world’s largest Bitcoin$87,578 reserve company were genuine. The strategy seems motivated by the declining market value of MSTR assets and challenges in meeting payment obligations and accessing capital. Despite these pressures, MSTR claims that a mere 3% annual increase in Bitcoin is sufficient, stating they are well-prepared for bear markets, as learned from intense FUD days in 2022.

Operation Choke Point’s Legacy

Operation Choke Point began in 2013 and intensified around cryptocurrencies, representing arbitrary bank account closures. This operation’s name became infamous when TRUMP supporters’ accounts were shut down upon his election loss. The situation escalated notably during the 2022 crypto crash when exchanges and investors witnessed closures.

Although JPMorgan offers substantial solutions for large crypto ETFs, it has resumed closing accounts associated with crypto. The bank recently ended its relationship with the CEO of bitcoin payment company Strike, reported via email, drawing considerable critique likened to Chokepoint 2.0.

Strike CEO Mallers expressed confusion over his arbitrary account closure, emphasizing long-standing family ties with the bank. The given reason was invariably vague, simply stating, “We can’t tell you.”

Sen. Cynthia Lummis remarked that operation Chokepoint 2.0 persists, eroding trust in conventional banking. She emphasized the importance of ending this practice to help establish the U.S. as a hub for digital assets.

Numerous crypto company founders, like Caitlin Long of Custodia Bank, are experiencing unjustified account closures, anticipated to continue until a new Federal Reserve chair takes office.

Keeping abreast of developments in cryptocurrency is vital, with apps like CryptoAppsy providing summaries and analyses of significant events.

Banks cite legal concerns over dealing with crypto-connected customers, despite full KYC compliance by users transacting on regulated exchanges. Such suspicions equate all crypto investors to criminals, a notion found deeply troubling.

Research indicates that illicit funds predominantly circulate through banks, cash, or Gold rather than crypto. The global share of illicit funds in cryptocurrency is negligible.