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Bitcoin News Update: JPMorgan's Shutdown of Strike Opposes Trump's Directive Against Debanking

Bitcoin News Update: JPMorgan's Shutdown of Strike Opposes Trump's Directive Against Debanking

Bitget-RWA2025/11/24 09:24
By:Bitget-RWA

- JPMorgan's closure of Strike CEO Jack Mallers' accounts contradicts Trump's August executive order banning crypto "debanking," sparking regulatory scrutiny. - Mallers criticized the lack of transparency, noting JPMorgan cited "concerning activity" without specifics and warned against future account access. - Industry experts argue such actions risk pushing crypto innovation to unregulated markets, undermining U.S. financial leadership and democratic systems. - The incident highlights contradictions in JP

Chase unexpectedly shut down the accounts of Strike CEO Jack Mallers in September, sparking renewed controversy over "debanking" within the crypto industry. Critics claim this action runs counter to recent executive orders intended to prevent such practices. Mallers, whose company enables Bitcoin payments, , explaining that JPMorgan did not provide a clear explanation, only referencing "concerning activity" found during standard account reviews. The bank also for Mallers might not be possible, citing compliance with the Bank Secrecy Act.

This episode has attracted significant attention, especially in light of President Donald Trump's executive order from August, which specifically barred banks from denying services to crypto-related firms.

to accusations surrounding "Operation Chokepoint 2.0," a phrase used by industry insiders to describe alleged efforts during the Biden administration to pressure banks into cutting ties with crypto businesses. Although Trump’s Working Group on Digital Asset Markets asserted in July that the policy had been "permanently ended," about whether these rules are being uniformly applied.

Mallers pointed out the irony, mentioning that his father had been a private client of JPMorgan for more than three decades. "Whenever I asked for a reason, they always replied: 'We can't disclose that information,'" he shared,

. The bank’s unwillingness to provide details has fueled speculation about excessive regulatory intervention, with Tether’s Strategic Advisor Bo Hines publicly questioning if the alleged Biden-era crackdown is still ongoing: "Hey Chase... you realize Operation Choke Point is over, right? Just making sure," he posted .

Industry observers see this as part of a larger obstacle to mainstream crypto adoption. Jason Allegrante, Fireblocks’ Chief Legal and Compliance Officer,

to conventional banking "will simply drive crypto innovation elsewhere and leave the U.S. behind," arguing that such measures weaken democratic financial systems. Others, such as Tether CEO Paolo Ardoino, offered a broader perspective, saying, "Bitcoin will endure through the ages. Any institution that tries to suppress it will ultimately fail and fade away" .

JPMorgan’s move seems inconsistent with its recent efforts to embrace crypto, such as plans to accept

and as collateral for loans and collaborations with companies like Coinbase. The account closures have also revived longstanding friction between traditional banking and the crypto world, with detractors noting that banks frequently cite anti-money laundering (AML) rules or regulatory uncertainty to justify such decisions . Eric Trump, the president’s son, that major banks terminated his family’s accounts during his father’s presidency, which he said hastened their adoption of digital currencies.

This situation highlights the urgent need for more precise regulations to clarify how banks and crypto businesses should interact. Without clear standards, banks may continue to act on perceived threats, maintaining an environment of unpredictability for crypto companies. As Mallers’ experience shows, even prominent individuals with long-standing banking ties can be subject to opaque decisions that risk hindering innovation or pushing activity to less regulated arenas.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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