Senator Lummis Criticizes JPMorgan, Claims Anti-Crypto Policies Propel Industry Offshore

The crypto industry and supporters, including Senator Cynthia Lummis, are expressing strong discontent over JPMorgan’s recent decision to close the account of Strike CEO Jack Mallers.

Lummis, a pro-crypto voice in Congress, highlighted this incident as part of a larger issue, referencing Operation Chokepoint 2.0, a term used to describe the coordinated effort by federal banking authorities to restrict access to banking services for the digital asset sector.

‘Operation Chokepoint 2.0 Lives On’

Mallers took to social media platform X (previously Twitter) to share his bewilderment over his account closure, stating, “Last month, J.P. Morgan Chase threw me out of the bank. It was bizarre. My dad has been a private client there for 30+ years.” 

He indicated that when he sought clarification from JPMorgan about the closure, he received no substantial answers, only being informed that they couldn’t disclose details. 

In a letter from the bank, he was notified of unspecified “concerning activity” on his accounts, which asserted that JPMorgan might not be able to open new accounts for him in the future. 

Lummis weighed in on the matter, stating on X, “Operation Chokepoint 2.0 regrettably lives on. Policies like JP Morgan’s undermine confidence in traditional banks and send the digital asset industry overseas.” 

She stressed the urgency of addressing these issues, asserting that it is time to put Operation Chokepoint to rest and position the US as the digital asset capital of the world.

The controversy surrounding JPMorgan intensified when Bo Hines, a former head of Trump’s Council of Advisers on Digital Assets and now advisor to stablecoin issuer Tether, publicly confronted the bank. 

He remarked, “Hey Chase… you guys know Operation Choke Point is over, right? Just checking,” drawing attention to the perceived disconnect between JPMorgan’s actions and the positive regulatory landscape surrounding crypto assets.

JPMorgan Boycott?

In addition to these criticisms, a more significant concern emerged with JPMorgan’s warnings about potential consequences for Strategy (MSTR). NewsBTC reported last week that Michael Saylor’s firm may lose its standing in key indices, such as MSCI USA and the Nasdaq 100, due to proposed changes by MSCI. 

Analysts from JPMorgan claimed that this change could trigger passive outflows estimated between $2.8 billion and $8.8 billion if the MSCI decision proceeds as anticipated by January 15.

MSCI has suggested proposals to exclude companies with more than 50% of their assets in digital currencies from its global indexes, putting Strategy at significant risk. 

JPMorgan analysts noted, “MicroStrategy is at risk of exclusion from major equity indices as the January 15th MSCI decision approaches,” underscoring the urgency of the situation.

Market expert Adam Livingston voiced his frustrations on social media, calling for a boycott of JPMorgan and accusing the bank of waging a “war with Bitcoin.” 

He emphasized that JPMorgan underestimated the resilience of the Bitcoin community, asserting that they thought they could undermine MSTR without repercussions. 

Livingston recalled that the bank, which benefited from bailouts during the 2008 financial crisis, seemed to assume Bitcoin supporters would remain subdued and obedient.

Amid the controversy surrounding one of the world’s top banking institutions, Bitcoin witnessed a tiny recovery on Monday, trading at $87,830 when writing, following a significant plunge that saw the market’s leading cryptocurrency retrace all the way down to $80,000 last Friday. 

Featured image from Reuters, chart from TradingView.com