tl;dr
Andreessen Horowitz (a16z) warns of a potential new wave of banking restrictions on the crypto sector, termed “Chokepoint 3.0,” following previous government efforts to limit crypto firms. JPMorgan is charging high fees for access to basic customer data for crypto and fintech companies, which a16z s...
Venture capital giant Andreessen Horowitz (a16z) is raising alarms about a potential new wave of banking restrictions targeting the crypto sector. In their recent Fintech Newsletter, a16z general partner Alex Rampell introduced the concept of “Chokepoint 3.0,” envisaging it as a follow-up to the Biden administration’s prior efforts, known as Operation Chokepoint 2.0, aimed at debanking and deplatforming crypto firms.
Rampell points to JPMorgan’s latest move to impose substantial fees on crypto and fintech companies merely for accessing basic customer data—such as routing codes and account numbers—which is typically public information available even on printed checks. He argues these fees are not about generating revenue for JPMorgan, an $800 billion enterprise, but rather about stifling competition within the financial landscape.
The potential fallout from these fees could be significant. Rampell warns that charging $10 to transfer $100 into platforms like Coinbase or Robinhood might deter users, while increased costs for fintech loans could push consumers toward less favorable offerings from traditional banks like JPMorgan. This strategy, if adopted broadly by banks, could effectively block consumers from connecting their chosen crypto and fintech applications to their bank accounts, undermining competition and innovation.
This development invites us to question: How will the fintech and crypto industries adapt if major banks restrict essential data access? Could regulatory intervention restore balance, or will traditional financial institutions continue to assert dominance using such tactics? As the battle over financial data access intensifies, investors and consumers alike must stay vigilant.