a16z Warns Banks Implementing ‘Chokepoint 3.0’ Against Crypto Apps
Big banks are increasing fees for fintech and crypto app usage, leading to what some term "Operation Chokepoint 3.0," according to Alex Rampell from Andreessen Horowitz. Key points include:
- Traditional banks charge high fees for account data access and fund transfers, targeting platforms like Coinbase and Robinhood.
- This trend follows the end of Operation Chokepoint 2.0, which aimed to debank crypto businesses under the Biden administration.
- JPMorgan Chase has been cited for controlling data delivery and charging fees for basic information, potentially deterring users from transferring funds into crypto accounts.
- Rampell emphasized that these tactics could reduce competition by making it costly to move funds to alternative platforms.
- Tyler Winklevoss criticized JPMorgan's approach as harmful to innovation and consumers.
- JPMorgan claims to charge fees to prevent misuse of user data, citing nearly 2 billion monthly third-party requests.
- Rampell urges the Trump administration to intervene against these practices before they become widespread.