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According to a tweet posted on Jan. 23, this is exactly what occurred to Uniswap founder Hayden Adams. JPMorgan Chase had frozen Adams’ bank accounts with “no notice or explanation,” according to Adams.
Before adding, “thanks for making it personal,” he added that he knew of “many individuals and firms who have been similarly targeted merely for working in the crypto field.”
This would be the ideal strategy for banks to combat cryptocurrency without causing a public uproar. Former Commodity Futures Trading Commission (CFTC) Commissioner Brian Quintenz proposed this in response to Hayden’s request for clarification from the bank.
“Likely a shadow de-banking of crypto by @federalreserve or @USOCC [Office of the Comptroller of the Currency] bank examiners, with direction from the top.”
So, Quintenz adds that
“if the examiner told a bank that a certain customer is too risky and the bank ended that relationship,”
“the bank is contractually prevented from telling that customer why.”
To make his point, he quoted a Nov. 20 Wall Street Journal piece by pro-crypto senator Cynthia Lummis. Lummis alleged in it that the new Federal Reserve chiefs were deliberately stifling fintech and crypto innovation, particularly in Wyoming, where special-purpose depository institutions (SPDIs) had previously been given permission to operate as fully regulated crypto banks.
So, Many people responds to Hayden’s complains, claiming that they, too. Then, had been barred by banks or had their accounts canceled for dealings with cryptocurrency.
Chase customer service responded to the tweet as well. That’s, requesting that the Uniswap founder use their support messaging system to resolve his
“worse than ideal experience” with the bank.
So, Democratic Candidate for Congress, Matt West, comments
“Absolutely insane. This is part of why we need clear regulatory framework in the US re: crypto and banks.”
Last week, the CEO of JPMorgan’s digital asset arm claimed that crypto is “here to stay,”
That’s, although that may not be the case for some of the bank’s customers.
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