JPMorgan Account Closure Justification

On Sunday, Mallers posted on X:

“Last month JP Morgan Chase kicked me out of the bank. It was weird. My dad has been a private client there for over 30 years.”

When he asked why his accounts were closed, the bank reportedly replied, “We are not allowed to tell you.” Mallers also shared a photo of a letter that appeared to come from JPMorgan and said, “I’m very proud I framed it.”

The letter stated:

“We have identified concerning activity. We are committed to complying with regulations and ensuring the safety and integrity of the financial system. Due to this commitment, we may not be able to open new accounts for you in the future.”

These statements highlight that crypto CEOs still face risks in accessing traditional banking services. On social media, users debated whether the alleged “Operation Chokepoint 2.0” remains active under the Biden administration.

Political and Industry Reactions

Operation Chokepoint 2.0 is described as a coordinated effort during the Biden administration in which federal banking regulators allegedly pressured banks to deny services to companies and executives in the crypto ecosystem.

In August, former President Trump issued an executive order aimed at preventing the closure of accounts for crypto-related businesses. In July, Trump’s Digital Asset Markets Working Group stated:

“The Trump Administration worked to end regulatory efforts that denied banking services to the digital asset sector, fully and once for all ending Operation Chokepoint 2.0.”

Tether CEO Paolo Ardoino responded to Mallers on X:

“Bitcoin will withstand the test of time. Organizations trying to undermine it will fail and disappear. They cannot prevent people from choosing freedom.”

Bo Hines, who previously led former President Donald Trump’s Council of Advisers on Digital Assets and now serves as a Strategic Advisor at Tether, reacted to the incident on X:

“Hey Chase… Operation Choke Point is over, right? Just checking.”

Hines’ comment reflects the view among some crypto advocates that political pressure, rather than genuine compliance issues, continues to influence banking relationships.

Implications and Risks for the Crypto Sector

Mallers’ account closure has brought financial access and regulatory risks in the crypto sector back into focus. Experts warn that such moves will not eliminate the industry; instead, they may push companies outside the U.S. Furthermore, these actions pose risks to blockchain innovation and democratic financial access.

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The post JPMorgan Closes Strike CEO Jack Mallers’ Bank Accounts appeared first on Coin Engineer.

A Firm Response to the ‘Debanking’ Controversy

In recent years, many crypto entrepreneurs have found themselves locked out of their bank accounts or denied basic financial services without clear justification. Critics have labeled this pattern of denial “Operation Chokepoint 2.0,” arguing that some banks are intentionally distancing themselves from politically sensitive industries.

With its proposed executive order, the Trump administration aims to put an end to these practices and ensure that crypto businesses can access the banking system without discrimination.

Big Banks on the Defensive

Major institutions like JPMorgan Chase, Citigroup, and Wells Fargo have reportedly met with state officials in Texas and Oklahoma to defend themselves against allegations of refusing services to sectors such as fossil fuel production and firearms manufacturing. Similar concerns have also been raised regarding digital asset firms, suggesting that the issue may be part of a broader trend of politically motivated financial exclusion.

The 2023 Crypto Banking Crisis

The collapse of several crypto-friendly banks — Silicon Valley Bank, Silvergate Bank, and Signature Bank — in early 2023 sent shockwaves through the digital asset ecosystem. Many in the industry viewed these events as coordinated moves to isolate crypto from the traditional financial system.

Debanking Could Persist Until 2026

Despite Trump’s more favorable stance on crypto, industry experts caution that banking challenges may continue. Custodia Bank CEO Caitlin Long noted that substantial change may not be possible until 2026, citing limitations on appointing new Federal Reserve leadership.

“Trump won’t be able to name a new Fed governor until January,” Long explained. “So while other agencies may reverse their anti-crypto policies, the Federal Reserve may remain a roadblock.”

She added that her own bank suffered major financial setbacks and delays due to banking restrictions that cost “millions of dollars” in damages.

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Trump Places Crypto at the Center of US Economic Strategy

US President Donald Trump has made cryptocurrency the centerpiece of his economic strategy, signaling a major policy shift for the US blockchain industry, according to Crypto.com CEO Kris Marszalek.

Trump hosted a Crypto Summit at the White House on March 7, stating his plan to make crypto policy a national priority and transform the US into the global hub for blockchain innovation.

According to Marszalek’s X post on March 8, the summit marked “a truly historic day at the White House.”

Marszalek praised Trump for reversing policies like Operation Chokepoint 2.0, which had allegedly led to crypto and tech firms being denied banking services under the Biden administration.

The difficulties faced by crypto firms in finding banking partners could be a thing of the past, following the US Office of the Comptroller of the Currency (OCC) easing its stance on how banks can engage with crypto, just hours after Trump vowed to end the long-standing crackdown restricting crypto firms’ access to banking services.

Crypto Summit Coincides with Key Bills Awaiting Congressional Approval

The Crypto Summit also comes at a time when two key bills, the Stablecoin Bill and the Market Structure Bill, are awaiting congressional approval. These bills aim to eliminate regulatory uncertainty surrounding the US crypto industry.

Marszalek said ongoing dialogues with key regulators like the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) could lead to the passing of “landmark legislation,” adding:

“The impact of these regulatory frameworks being established will be felt worldwide and will provide the necessary infrastructure to move offshore activity onshore and offchain activity onchain.”

The CEO’s remarks came after Trump signed an executive order on March 7, outlining a plan to establish a Bitcoin reserve using cryptocurrency seized in government criminal cases, rather than acquiring Bitcoin through market purchases.

While no direct BTC purchases were announced, the bill stated that the US Treasury and Commerce Secretaries could pursue additional Bitcoin acquisitions using “budget-neutral strategies,” provided these strategies do not impose extra costs on American taxpayers.

US Bitcoin Reserve Plan: A First Step for Global Financial Integration

Some analysts view the US Bitcoin reserve plan as the first “real step” toward Bitcoin’s integration into the global financial system.

Joe Burnett, head of market research at Unchained, commented, “The US has taken its first real step toward integrating Bitcoin into the fabric of global finance, recognizing its role as a foundational asset for a more stable and sound monetary system.”

While Trump has previously emphasized his intent to bolster crypto innovation in the US, Anastasija Plotnikova, co-founder and CEO of Fideum, a regulatory and blockchain infrastructure firm, pointed out that developing regulatory frameworks takes time, and setting the “right regulatory tone” will be crucial for the administration.

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U.S. Government Rejects Transparency Requests Regarding Operation Chokepoint 2.0

Some U.S. government agencies continue to reject transparency requests regarding their role in Operation Chokepoint 2.0, during which crypto and tech founders were allegedly denied banking services under the Biden administration, according to Coinbase’s Chief Legal Officer Paul Grewal.

The collapse of crypto-friendly banks in early 2023 sparked the first allegations of Operation Chokepoint 2.0. Critics, including venture capitalist Nic Carter, described it as a government effort to pressure banks into severing ties with cryptocurrency firms.

Despite recent regulatory changes, agencies like the Federal Deposit Insurance Corporation (FDIC) continue to “resist basic transparency” efforts, Grewal wrote in a March 8, 2025 post.

“They haven’t gotten the message,” he added.

Coinbase Requests FDIC to Disclose Operation Chokepoint 2.0 Documents

Coinbase requested that the FDIC explain how it conducted “due diligence” to ensure no documents related to the event were destroyed in court. However, the agency “repeatedly refused to do so,” Grewal said.

These comments came just hours after the U.S. Office of the Comptroller of the Currency (OCC) softened its stance on how banks can engage with crypto. U.S. President Donald Trump vowed to end the prolonged crackdown restricting crypto firms’ access to banking services.

Trump said during the White House Crypto Summit, “I am ending Operation Chokepoint 2.0” to industry leaders.

Grewal: FDIC Did Not Fully Cooperate with Coinbase’s FOIA Requests

Grewal claimed that the FDIC did not fully cooperate with Coinbase’s Freedom of Information Act (FOIA) requests.

“The agency has only produced snippets from a few documents that have little to no relation to the specific FOIA policies or practices discussed in History Associates’ amended complaint. What exactly are they hiding?” wrote Grewal.

Additionally, Grewal noted that the FDIC had redacted a total of 53 pages, with many other pages containing “heavy redactions rendering the documents unintelligible.”

Grewal also mentioned that his team had requested the FDIC provide a “sworn testimony” to the court.

On March 4, Coinbase submitted a FOIA request to the U.S. Securities and Exchange Commission (SEC) to find out how many investigations and enforcement actions were brought against crypto firms between April 17, 2021, and January 20, 2025.

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In a Jan. 4 X post, Deaton warned, “If such actions go unchallenged, it creates a dangerous precedent where regulatory bodies can silently suppress industries they disfavor, stifling innovation, competition, and economic opportunity.” His post was directed at U.S. President Donald Trump, Vice President JD Vance, and Department of Government Efficiency leaders Elon Musk and Vivek Ramaswamy.

Deaton added, “This isn’t just a fight for crypto; it’s a fight against the erosion of institutional integrity and the unchecked power of unelected bureaucrats.” He also addressed the post to Secretary of Commerce Howard Lutnik and Trump’s AI and crypto lead David Sacks.

Deaton’s Ripple Experience and Salary-Free Offer

Deaton, known for his efforts in Ripple‘s legal battle against the SEC, said he would take on the role “without salary.”
“The American people deserve the truth far more than I or anyone else needs another taxpayer-funded paycheck,” he declared.

You Might Be Interested In: Elon Musk Shared, That Memecoin Flew: Up 500%!

His offer comes after a court allowed crypto exchange Coinbase to access unredacted files from the Federal Deposit Insurance Corporation (FDIC) as part of its investigation into the alleged Operation Chokepoint 2.0. Paul Grewal, Coinbase’s chief legal officer, stated that the documents revealed a coordinated effort to halt various crypto activities, ranging from basic BTC transactions to more complex services.

Operation’s Architect Resigns

The alleged architect of Operation Chokepoint 2.0, Martin Gruenberg, resigned as FDIC Chair in November.

The operation refers to an unconfirmed U.S. government effort to pressure banks into denying or limiting services to crypto firms. This rumored initiative may have contributed to crypto exchanges like Binance struggling to secure local banking partners following the collapse of Silvergate and Signature Bank in March 2023.

Deaton’s new proposal follows his loss to Democrat Elizabeth Warren in the Massachusetts Senate race on Nov. 5. Warren’s landslide victory came after two heated debates where Deaton criticized her for building an “anti-crypto army” instead of focusing on issues affecting the state’s lower and middle classes.

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Risks Between the Crypto Sector and Banking Systems

The cryptocurrency industry faced the threat of being excluded from traditional banking systems under Operation Chokepoint 2.0. Jason Lau, Chief Innovation Officer at the crypto exchange and self-custody wallet provider OKX, emphasized that building strong relationships with banks and financial stakeholders serves as a strategic safeguard against debanking threats.

Lau highlighted that the traditional financial world is heavily based on trust and that building relationships with banking institutions, financial regulators, and other stakeholders is essential to maintaining strong partnerships. In an interview with Cointelegraph, Lau stated:
“You need to take the time to build relationships with all your stakeholders, including regulators and your banking partners. We’ve spent years and years working with our partners and stakeholders to make sure they understand our business.”

The Global Problem of Debanking

Many Operation Chokepoint 2.0 debanking cases originated in the United States and involved US-based entities. However, debanking continues to be a global issue with implications for business, technological innovation, and freedom of speech.

For instance, Ben Rose, the former regional manager of Binance Australia, claimed that the exchange was given only 12 hours’ notice before being debanked. The debanking, which occurred in the middle of the night, reportedly came without a clear explanation.

Debanking Cases in the United Kingdom

In July 2023, leaked documents revealed that UK politician Nigel Farage was debanked due to his political views. This led the UK government to propose revoking banks’ licenses if they violate freedom of speech.

The UK government laid out the following consumer protection provisions for banks:

• A three-month notice to customers before account closures,
• An explicit reason for account closure,
• An opportunity to appeal the closure.

In 2023, crypto companies in the UK also reported being turned away by banks. Common issues included excessive paperwork, frozen accounts, and rejected applications without sufficient explanation.

As of 2024, crypto firms and projects continue to face similar challenges.

Debanking gained widespread recognition in online platforms and digital culture, earning a spot on the 2023 Collins Dictionary’s Word of the Year shortlist.

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The Harm of Debanking

Schwartz highlighted that debanked entities either switch to alternative service providers or move their operations underground, thereby evading surveillance and sanctions enforcement. He further pointed out that these practices erode the rights to due process, freedom of speech, and protection against unlawful search and seizure.

Schwartz stated:

“Our government has become addicted to indirect regulation precisely because of these evils. It is cheaper and easier to pressure someone else to punish me than to charge me with a crime and give me due process. But the government ought not to punish people without giving them due process.”

He also criticized the government for pressuring banks to cut off disfavored businesses instead of making such businesses explicitly illegal. Schwartz urged the authorities to adopt lawful and transparent processes to regulate industries.

Support from the Tech Sector

Venture capitalist Mark Andreesen revealed that over 30 tech firms were impacted by Operation Chokepoint 2.0. Many tech leaders have since taken to social media to share their experiences with debanking.

For example, Frax Finance founder Sam Kazemian claimed that JPMorgan Chase debanked him in December 2022. Similarly, Coinbase co-founder and CEO Brian Armstrong filed a Freedom of Information Act (FOIA) request to obtain records about Operation Chokepoint 2.0, and he is currently compiling the findings.

In September 2024, Nic Carter, a partner at Castle Island Ventures, accused the Biden administration of deliberately shutting down Silvergate Bank, a major crypto banking institution, as part of an effort to suppress the crypto industry. Carter stated, “I believe Silvergate could have survived its drawdown — and was on a path to do so.”

Despite the regulatory hostility under the current administration, industry leaders are optimistic that the incoming Trump administration will reverse these policies and create a more favorable environment for the crypto sector.

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