Tyler Winklevoss, Gemini co-founder, is accusing JPMorgan Chase of trying to kill the fintech and crypto industries. He claims JPMorgan wants to charge hefty fees for accessing banking data, currently free via apps like Plaid. This, he says, would bankrupt fintech companies that help users connect their bank accounts to crypto exchanges like Gemini, Coinbase, and Kraken.
The Fight Over Banking Data
JPMorgan recently started offering price sheets to data aggregators for API calls that transfer customer data. They claim these fees cover the costs of maintaining a secure system. This move comes after the CFPB (Consumer Financial Protection Bureau) finalized a rule requiring banks to provide customer data to third parties for free. However, a lawsuit challenging this rule, coupled with the CFPB’s surprising suggestion that the rule be overturned, has seemingly emboldened JPMorgan.
More Than Just Money: A Political Battle
Winklevoss argues that JPMorgan’s actions undermine efforts to make the US a crypto-friendly nation. Others, like attorney John E. Deaton, have joined the criticism, highlighting JPMorgan’s past fines and calling its CEO, Jamie Dimon, “Public Enemy #1.” Venture capitalist David Sacks simply calls the situation “Concerning.”
The Real Impact on Crypto
The dispute has significant implications for crypto exchanges. If data aggregators pass on the new fees, it will make it more expensive for users to connect their bank accounts to crypto platforms, potentially hindering growth in the crypto market. This comes at a time when US regulators are working on clearer guidelines for digital asset platforms.
