Chokepoint 3.0: Big Banks Target Crypto With New Tactics
Alex Rampell warns that U.S. banks are launching “Chokepoint 3.0” to suppress crypto and fintech rivals like Coinbase and Robinhood.
- Banks are deploying new tools to hinder fintech and crypto firms
- High fees and app blocking are core parts of Chokepoint 3.0
- JPMorgan allegedly raising costs for platforms like Coinbase
According to Alex Rampell, a general partner at Andreessen Horowitz (a16z), the end of “Operation Chokepoint 2.0” does not mean crypto and fintech firms are safe. Instead, U.S. banks have shifted tactics in what he describes as “Chokepoint 3.0.” This latest strategy involves less direct regulation and more financial roadblocks to limit competition.
Rather than relying on government crackdowns, major banks are using economic pressure to slow the growth of companies like Coinbase, Robinhood, and other crypto-friendly platforms. Rampell suggests that the financial establishment is quietly trying to win the war against decentralized finance by making it more expensive and inconvenient for users to access these platforms.
How Chokepoint 3.0 Works
Rampell outlines three key tactics behind this strategy:
- High Fees: Banks are allegedly raising transaction costs and transfer fees when users try to move money to crypto platforms, making these services less attractive.
- Restricted Data Access: Fintech apps often rely on user-permissioned data from banks to function. By limiting or delaying access to this information, traditional banks can slow or disrupt competing services.
- App Blocking and Limitations: There are reports of banks placing restrictions on crypto app usage or refusing to process transactions linked to digital asset services.
These tactics don’t involve legal bans or direct confrontation. Instead, they represent a quieter but potentially more effective method of suppressing innovation.
JPMorgan in the Spotlight
Rampell specifically points to JPMorgan as one of the institutions pushing this agenda. He suggests that the bank is deliberately raising the cost of moving funds to platforms like Coinbase and Robinhood, aiming to make traditional banking services seem more favorable by comparison.
This raises concerns among crypto advocates and entrepreneurs, who argue that these moves stifle competition and harm consumer choice in financial services.
If Chokepoint 3.0 gains momentum, it could threaten the progress made by fintech and crypto innovators in democratizing finance. The industry must remain vigilant to protect open access and fair competition.
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