The banking relationship between JPMorgan and cryptocurrency exchange Gemini has been put on hold.

This decision follows public criticism by Gemini’s leadership regarding the bank’s approach to third-party access to financial data. The pause is part of broader tensions within the financial sector concerning data portability, particularly in relation to Plaid, a commonly used data aggregator by fintech and crypto firms.

Regulatory Dispute Over Data Sharing

The core of the disagreement centers on the US Consumer Financial Protection Bureau’s 2023 Open Banking Rule, which affirms consumers’ rights to share their financial data with trusted apps, including those for cryptocurrency transactions. JPMorgan and other banks have expressed concerns about what they see as excessive and unregulated data collection by aggregators like Plaid.

According to JPMorgan representatives, Plaid makes nearly 2 billion monthly API calls to user accounts, the majority of which are said to occur without direct consumer initiation. The bank has highlighted potential vulnerabilities arising from this level of access, citing what it describes as ‘tens of millions of dollars in fraud’ over the past year linked to aggregator traffic. JPMorgan advocates for regulated and low-cost data sharing solutions, suggesting a fair access cost at under ten cents per user per month.

Gemini co-founder Tyler Winklevoss publicly accused JPMorgan and other financial institutions of trying to marginalize fintech and cryptocurrency businesses by limiting access to customer banking data. This accusation included references to ‘Operation ChokePoint 2.0’, a term used in the crypto industry to describe alleged systemic efforts by banks and regulators to cut off critical services to digital asset firms.

JPMorgan did not directly address its dealings with Gemini but stated in response that it continues to serve many crypto-related businesses and is actively onboarding new clients. The bank rejected claims of an intention to block fintech or crypto firms, instead focusing on perceived uncontrolled and risky data harvesting practices by third-party aggregators.

Ten crypto firms recently jointly wrote a letter to former President Donald Trump, urging action to protect consumer rights to control and share their financial data under the Open Banking Rule.