Operation Chokepoint: Senator Lummis Calls Out JPMorgan Over Debanking Bitcoin Advocate Jack Mallers

U.S. Senator Cynthia Lummis has criticized JPMorgan for its anti-crypto stance, calling for an end to Operation Chokepoint 2.0. She argues that the bank’s actions damage public trust in traditional banking and hinder the growth of digital assets in the United States.

Lummis Slams JPMorgan’s Move

The dispute began when JPMorgan closed the accounts of Jack Mallers, the chief executive of the Bitcoin payment firm Strike. Mallers, a big supporter of cryptocurrency, slammed JPMorgan for not providing a clear reason and just saying that concerning activity was discovered in routine reviews.

As a vocal Bitcoin and cryptocurrency advocate, Lummis did not take to JPMorgan’s move. In a X post, she said such policies make people lose trust in traditional banks, and cause the digital asset industry to be pushed into other countries. 

Operation Chokepoint’s Ongoing Impact on JPMorgan

Operation Chokepoint 2.0 is the name to a new program which aims to block firms operating in blockchain space from accessing banking services. The initial Operation Chokepoint, by the U.S. Department of Justice started in 2013.

Its goal was to prevent banks from doing business with so-called high-risk industries also including cryptocurrencies. Critics contend that the initiative’s legacy has haunted the industry even with its formal conclusion under Trump.

The approach of JPMorgan to cryptocurrency has evolved. The bank has also created its own stablecoin, JPM Coin, and explored blockchain technology. But the bank is very wary of investing in cryptocurrency as a new asset. Lummis suggested that JPMorgan’s stance ought to adapt in response to a growing demand for digital assets among the traditional financial sector.

Mallers’ experience underscores the long battle between crypto acolytes and old guard financial institutions. His father, he said, had been a private client there for more than 30 years but the bank offered no reason for shutting down his account.

Aside from Mallers, JPMorgan faces heavy backlash from Bitcoin advocates such as high-profilea names Grant Cardone, Max Keiser and other. Critics are also targeting the bank for its ties to Michael Saylor’s MicroStrategy (MSTR). The firm holds a massive amount of Bitcoin in its assets.