- Lummis challenges JPMorgan actions that restrict crypto users and raise new concerns about fair banking access in the United States.
- The Mallers case renews debate on Operation Chokepoint 2.0 and highlights growing tension between banks and crypto firms.
- JPMorgan faces wider scrutiny as crypto advocates question how major banks apply risk rules to digital asset customers.
U.S. Senator Cynthia Lummis intensified pressure on JPMorgan after the bank closed accounts linked to Jack Mallers, the head of the Bitcoin payments company Strike. The bank reported concerning activity during standard checks. However, it did not provide additional details. The move triggered strong concern across the cryptocurrency sector and raised questions about access to banking for digital asset users.
Lummis argued that these patterns weaken trust in traditional banks. She said these steps push digital asset activity outside the country. Her intervention brought new attention to a long-running dispute between policymakers and major financial institutions.
Fresh Scrutiny on Operation Chokepoint 2.0
The situation revived debate around Operation Chokepoint 2.0. This term is used by industry members to describe efforts that limit banking access for blockchain firms. The original Operation Chokepoint launched in 2013 under the Department of Justice. It aimed to restrict banks from dealing with sectors labeled as high-risk. Digital assets later appeared on that list. The program ended during the Trump administration. However, its legacy continues to shape bank compliance and internal risk controls.
Crypto supporters believe these effects remain visible. They say banks remain cautious toward legitimate blockchain businesses. They also believe these patterns slow down responsible development. The Mallers case added urgency to these concerns and strengthened calls for reform.
JPMorgan Balances Caution With Select Advancements
JPMorgan has taken mixed steps in the digital asset space. The bank introduced JPM Coin for settlement processes. It also explored blockchain applications for cross-border transfers. These moves show interest in the technology. However, the bank maintains a cautious view on cryptocurrency as an investment. This approach places the institution in a complex position as more investors seek regulated exposure to digital assets.
Lummis said traditional institutions must respond to rising demand for digital asset services. Her stance reflects the growing divide between lawmakers who support digital asset integration and institutions that prefer strict risk barriers.
Crypto Community Reacts to the Mallers Case
Mallers’ experience intensified criticism from major Bitcoin supporters. They viewed the account closure as part of a larger pattern within large banks. Strike users expressed concern about transparency. They also questioned how risk assessments are applied to companies building in the crypto sector.
Observers noted the long-term relationship between Mallers’ family and JPMorgan. This detail added more tension around the bank’s decision. Critics also highlighted the bank’s relationship with MicroStrategy , which holds a large Bitcoin position. They questioned how the bank handles clients with exposure to digital assets.
Regulatory Direction Under Close Watch
The incident placed new pressure on lawmakers and regulators. The sector now waits to see whether the dispute prompts policy adjustments. Industry participants expect further debate around banking access, risk controls, and the future role of digital assets in the U.S. financial system.
