Industry experts have expressed concerns about the tactics of US banks aimed at hindering the growth of major cryptocurrency platforms like Coinbase and Robinhood.
Alex Rampell, General Partner of Andreessen Horowitz (a16z), expressed his concerns in a newsletter on July 31st.
US Banks Accused of Leading Operation Chokepoint 3.0
Rampell pointed out that large banks like JPMorgan are artificially raising transaction fees. He claimed that these institutions are restricting bank access to weaken the cryptocurrency sector.
He explained that many users might be deterred if a $100 transfer to a cryptocurrency account incurs a $10 fee.
"If suddenly it costs $10 to move $100 to a Coinbase or Robinhood account, probably fewer people will do that. Or if it costs $10 to get a cheaper loan in fintech, you'll probably have to get a worse loan from JPM," he said.
He also noted that banks might prevent consumers from linking their bank accounts to cryptocurrency or fintech services, which would force consumers to rely on traditional financial products.
Rampell compared these actions to the controversial "Operation Chokepoint", an initiative from the Biden era that sought to limit bank access for cryptocurrency companies.
However, he argues that this time, the banks themselves are driving the effort.
"JPMorganChase is an $800 billion company. Don't mistake this: This is not a new revenue stream. It's suppressing competition. And if they succeed, every bank will follow suit," Rampell claimed.
Notably, Gemini co-founder Tyler Winklevoss previously echoed these concerns, warning that banks are actively working to weaken the cryptocurrency industry.
He also stated that his criticism led to JPMorgan halting efforts to rebuild banking relations with Gemini.
Despite these efforts to suppress cryptocurrency industry growth, platforms like Coinbase and Robinhood continue to expand.
Coinbase plans to introduce tokenized stocks, prediction markets, and derivatives to US customers, indicating ambitions to grow into a full-fledged financial exchange.
Meanwhile, Robinhood is expanding services across 31 European countries with over 200 tokenized stocks and ETFs. The platform aims to attract users in this region by offering commission-free trading and dividend support.
The US regulatory environment is also crypto-friendly, with the SEC recently announcing cryptocurrency-friendly regulations.
These developments suggest that the industry still has room for growth despite ongoing challenges from traditional financial institutions.
