A16Z general partner claims major US banks are leading Operation Chokepoint 3.0

Andresen Horowitz (a16z) general partner Alex Rampell has warned that major US banks are pushing to restrict crypto innovation and growth. In what he called Operation Chokepoint 3.0, the hedge fund executive claims that major banks represent the next big barrier for the industry.

According to him, Operation Chokepoint 2.0, where federal regulators during the Joe Biden administration tried to debank the crypto sector, has already ended. In its place, major banks are now trying to use high fees to limit crypto.

He said:

“Banks are aiming to implement their own Chokepoint 3.0 — charging insanely high fees to access data or move money to crypto and fintech apps — and, more concerningly, blocking crypto and fintech apps they don’t like.”

Rampell referenced JPMorgan Chase’s decision to charge fees from fintech apps for accessing customers’ bank account data as evidence of this claim.  The move by JPMorgan has sparked concerns that fintech companies might have to spend hundreds of millions to access customers’ data.

This has drawn criticisms from several stakeholders, including Rampell. He noted that JPMorgan is a mega bank worth $800 billion; thus, the decision to charge high fees from fintech platforms is not about generating revenue but rather to strangle the competition.

Rampell calls on CFPB to step in

Meanwhile, the a16z executive called on the Consumer Financial Protection Bureau (CFPB) to step in and prevent JPMorgan from proceeding with the decision. According to him, US law gives customers the right to their data, and CFPB needs to protect this right.

While noting that CFPB made questionable decisions in the last administration, he stated that customer data is a right that must be guaranteed. He added that the data is usually the account number and routing code, usually accessible on every check. However, banks now want to charge higher fees for delivering it electronically.

In the executive’s opinion, the higher fees will transfer to customers trying to use the fintech apps or crypto platforms. Thus, they might be forced to stick with the major banks even when those banks are offering crappier services. He added that if CFPB does not stop JPMorgan, other banks will likely do the same thing.

He said:

“In a perfect world, consumers would vote with their wallets. But every bank will likely do this, and getting a new banking charter takes years. Many banks have hostages, not customers.”

With customers likely powerless to make the decision, Rampell, who leads a16z Apps practice, believes the regulatory authority must prevent this move, which will limit consumer choice and kill competition.

Meanwhile, advocacy groups such as Public Policy Solutions and Consumer First have also criticized the JPMorgan fees, describing them as a tax on innovation.

Banks’ changing approach to crypto as JPMorgan partners with Coinbase

Interestingly, the criticism of JPMorgan comes as the bank and Coinbase announced a partnership. The partnership, which Coinbase disclosed a few days after the bank disclosed the increased fees for fintech companies, will allow customers to fund their Coinbase account using Chase credit cards in 2025

By 2026, customers can redeem their credit card reward points for USDC and link their Chase bank accounts to Coinbase. Many people saw the deal as a positive development and a sign that the bank is finally seeing the market opportunity in crypto, noting that JPMorgan CEO Jamie Dimon was still very much anti-crypto as early as January 2025.

However, experts believe the bank is still playing catch-up to the innovation already happening in the crypto sector. Maartje Bus, the president of the Medici Network, noted JPMorgan’s decision to remove third-party banking aggregator Plaid as the banking rail for its Coinbase relationship.

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