a16z Partners Slams JPMorgan, Spotlights “Operation Chokepoint 3.0”

Venture Capital firm Andreessen Horowitz (a16z) has criticized JPMorgan Chase for introducing new fees that significantly increase the cost of crypto operations. According to a newsletter , several a16z partners, James da Costa, David Haber, Angela Strange, and Alex Rampell, say this change reflects the start of “Operation Chokepoint 3.0.” JPMorgan’s New Fee Structure Raises Concerns Notably, they believe it is a coordinated effort by U.S. financial institutions to hinder innovation in the crypto and fintech sectors. In a series of statements and blog posts, a16z stated that the new JPMorgan fee policies will hurt platforms like Venmo, Robinhood, and Coinbase. The venture capital firm claims that the bank’s actions are part of a larger plan to limit access to financial services for digital asset companies. The term “Operation Chokepoint” originally described a U.S. Department of Justice initiative that targeted specific industries by pressuring banks to cease providing financial services to them. Recently, a16z highlighted a similar crackdown referred to as “Chokepoint 2.0.” This crackdown affected some banks that support cryptocurrency, leading to heightened regulatory scrutiny. Despite this, the banking sector appears to be creating “Chokepoint 3.0” on its own by increasing fees. Meanwhile, analysts believe that if major banks make it difficult for crypto transactions to be profitable, many platforms will reduce their services or look for alternative payment options. Tyler Winklevoss Says JPMorgan’s New Policy is Harmful Similarly, Tyler Winklevoss, co-founder of cryptocurrency exchange Gemini, has accused JPMorgan Chase of unfair treatment . This accusation followed his criticism of the banking giant for charging fintech companies for access to customer banking data. Furthermore, the controversy began when a report revealed that the United States bank plans to implement fees for fintech firms that require access to bank data for their services. This includes apps and services that help users buy crypto, manage finances, or use digital wallets. Winklevoss called this policy “anti-competitive” and warned that it could hurt innovation in fintech and cryptocurrency. Coinbase Slams FDIC on Chokepoint 2.0 In March, the American cryptocurrency exchange Coinbase criticized the Federal Deposit Insurance Corporation (FDIC) for its refusal to cooperate in the Operation Chokepoint 2.2 investigation . Instead, the agency focused on denying transparency on their part. Recall that the exchange compared the FDIC’s effort towards crypto regulation to other agencies. Coinbase CLO Paul Grewal also backlashed the FDIC for failing to cooperate and resist essential transparency efforts towards unwinding Operation Chokepoint 2.0. This campaign was designed to debank crypto-related companies by cutting them off from banking services. The goal was also to siphon every liquidity firm within the reach of the crypto firms. The post a16z Partners Slams JPMorgan, Spotlights “Operation Chokepoint 3.0” appeared first on TheCoinrise.com .

Source: The Coin Rise