JPMorgan Halts Gemini Onboarding After Tyler Winklevoss Data Fee Criticism
Tyler Winklevoss accused JPMorgan Chase of suspending Gemini's re-onboarding process this week after he publicly criticized the bank's new data access fees. According to Cointelegraph, the Gemini co-founder claimed the bank retaliated against his crypto exchange following his vocal opposition to JPMorgan's controversial billing policy.
The dispute began when Winklevoss called out JPMorgan's decision to charge fintech companies for access to customer banking data. He argued the fees would "bankrupt fintechs" that help consumers make crypto purchases. JPMorgan had previously removed Gemini during Operation ChokePoint 2.0, a regulatory campaign targeting crypto companies' banking relationships.
Winklevoss posted on Friday that JPMorgan told Gemini it was pausing their re-onboarding as a customer because of his criticism. The bank's move came after Bloomberg reported JPMorgan would charge hundreds of millions in fees for data aggregator access to customer accounts.
Data Access Fees Could Cripple Crypto Industry Operations
JPMorgan's pricing plan threatens to reshape how crypto companies connect with traditional banking systems. The fees target data aggregators like Plaid that help crypto platforms access customer bank accounts for transactions. Fortune reported some fintech executives estimate the costs would exceed their companies' entire 10-year revenue histories.
The charges specifically target payment-focused companies, creating higher barriers for crypto firms that rely on bank account connections. Industry leaders warned the fees would make crypto transactions economically impossible for many consumers. Ten major trade associations, including the Blockchain Association, urged President Trump to intervene and stop what they called a "punitive tax" on financial data access.
The timing coincides with uncertainty around federal open banking rules. The Consumer Financial Protection Bureau's Section 1033 regulation, which requires banks to share customer data for free, faces court challenges. Under the Trump administration, the CFPB has asked a federal judge to vacate the rule entirely.
Broader Banking Restrictions Reshape Crypto Market Access
The Gemini incident reflects a wider pattern of banking restrictions affecting cryptocurrency companies across the United States. Operation ChokePoint 2.0 has systematically reduced crypto firms' access to traditional banking services through regulatory pressure and informal guidance to financial institutions. Axios reported House Republicans held hearings in February examining how regulators used "pause letters" to restrict bank-crypto relationships.
The campaign has eliminated major crypto banking partners, with Silvergate Bank and Signature Bank shutting down their digital asset operations under regulatory pressure. Cross River Bank now serves as one of the few remaining explicit bridges between crypto companies and the traditional banking system. This concentration creates systemic risk for the entire digital asset ecosystem.
The Federal Deposit Insurance Corporation released 790 pages of documents in February showing how banks were discouraged from crypto engagement. These revelations came as lawmakers investigate allegations that federal agencies coordinated to limit crypto companies' banking access. The documents revealed banks were told to avoid crypto activities due to "reputational risk" rather than specific financial safety concerns.
