- JPMorgan halts Gemini banking over dispute on fintech data access rules.
- Legal fight brews over CFPB’s Open Banking Rule and aggregator fees.
- Storm trial challenged by late evidence tied to Binance and Tornado Cash.
According to a confirmation from Gemini, a conflict over consumer banking data access has led JPMorgan Chase to pause its re-engagement with cryptocurrency exchange Gemini. The move comes during a general legal and regulatory clash surrounding third-party data-sharing frameworks under the Consumer Financial Protection Bureau’s (CFPB) Open Banking Rule.
Tensions rose after Gemini co-founder Tyler Winklevoss accused JPMorgan of attempting to obstruct fintech and crypto platforms by limiting access to customer banking data via tools like Plaid.
The decision to suspend Gemini’s re-onboarding follows JPMorgan’s plans to set new fees on fintech firms that access customer data. The bank stated it remains committed to enabling secure data access for consumers but raised concerns about the role of unregulated data aggregators. In response to Winklevoss’s criticism, a JPMorgan spokesperson noted that the bank continues to onboard crypto clients and facilitates data-sharing securely.
Gemini had recently re-established ties with the bank after being previously cut off during a period the industry referred to as “Operation Choke Point 2.0.” Some crypto insiders now view the new pause as a continuation of that trend, suggesting it may signal ongoing friction between traditional banks and digital asset platforms.
The Open Banking Rule, finalized under Section 1033 of the Consumer Financial Protection Act, grants consumers the right to share their banking data with trusted apps. While phased implementation is underway, the rule is now facing lawsuits backed by major U.S. banks, including JPMorgan, challenging its legality and implications for data privacy.
Regulatory Events and Legal Disputes Unfold in Parallel
In a separate case, Storm’s legal team has requested that Judge Failla strike testimony from an IRS agent involved in the ongoing crypto-related trial. The defense claims that the government failed to disclose major evidence tied to funds traced through Binance and Tornado Cash until the weekend before trial testimony. They argue the late disclosure violates federal evidence procedures and damages the fairness of cross-examination.
Meanwhile, decisions are expected soon on whether venture capitalist Tom Schmidt of Dragonfly will testify, following his attorney’s invocation of the Fifth Amendment. Moreover, internal emails presented in court showed discussions between Dragonfly and the Tornado Cash team, including efforts to implement anti-money laundering measures.
