Big Banks Launch “Chokepoint 3.0” to Stifle Crypto and Fintech Growth

• Major U.S. banks are using high fees and app blocks to suppress crypto and fintech rivals.
• “Chokepoint 3.0” follows a history of regulatory overreach targeting innovative industries.
• Taxpayer-bailed banks face scrutiny for charging fees on consumer data rights.

The cryptocurrency and fintech sectors face a new challenge dubbed “Chokepoint 3.0” by Andreessen Horowitz partner Alex Rampell.

According to a recent X post by Wu Blockchain, major U.S. banks, including JPMorgan, are allegedly using high fees, restricted data access, and app-blocking tactics to suppress competition from platforms like Coinbase and Robinhood.

This follows the end of “Operation Chokepoint 2.0,” a regulatory effort under the Biden administration to deplatform crypto businesses, which has now shifted to private bank strategies. Rampell’s warning echoes historical precedents, such as the original Operation Chokepoint (2013-2017), where the DOJ pressured banks to sever ties with legal but controversial industries like payday lending. Critics labeled it regulatory overreach, and its abandonment after bipartisan backlash highlights a pattern. Now, banks are taking matters into their own hands.

The IMF’s 2021 working paper on fintech in Latin America noted that incumbent banks often raise fees and erect barriers to counter fintech growth, a tactic seemingly mirrored by JPMorgan’s efforts to increase the cost of transferring funds to crypto exchanges. Adding fuel to the controversy, these banks, including JPMorgan, received $25 billion in taxpayer funds during the 2008 financial crisis bailout. Charging exorbitant fees for basic data—like account numbers and routing codes, which Dodd-Frank Section 1033 mandates consumers should access freely—raises ethical questions.

The Consumer Financial Protection Bureau (CFPB) is tasked with enforcing these rights, but inaction could allow banks to effectively eliminate consumer choice. If a $10 fee to move $100 to a fintech app becomes standard, adoption could plummet, forcing users back to traditional banking services. The crypto and fintech communities are rallying against this move, with some calling for stronger CFPB oversight. As the industry evolves, the battle between innovation and entrenched financial power intensifies, potentially shaping the future of digital finance.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.