Multiple clients have accused JPMorgan of account closures, embroiling the bank in a storm of 'politically motivated account freezes'.
JPMorgan has faced accusations from multiple businesses and individuals in recent weeks for closing accounts without warning, raising doubts about whether the bank is taking discriminatory actions based on political stance. Devin Nunes, CEO of Trump Media and former congressman, pointed out that his own business had its account frozen by JPMorgan, and this situation is not an isolated case. He claimed that over 400 individuals and organizations related to Trump had their banking information extensively accessed by special prosecutor Jack Smith during a judicial investigation.
The CEO of the encrypted payment platform Strike, Jack Mallers, also stated last month that his personal account at JPMorgan was closed without reasonable explanation, raising concerns in the market about 'Chokepoint 2.0'. Additionally, the marketing director of the non-custodial trading platform Shape Shift shared a similar experience, claiming that the bank's actions have caused a chilling effect.
In the face of growing online criticism, there are doubts about whether JPMorgan is deliberately targeting specific groups or industries, especially those related to cryptocurrency or conservative political factions, making 'political account closures' a focus of public discourse.
Dimon firmly denies political factors: the rules are the problem, stop 'fantasizing stories.'
JPMorgan CEO Jamie Dimon responded to the controversy on Fox News with an unusually strong tone. He bluntly stated, 'People should grow up and stop making up stories.' Dimon emphasized that banks do indeed close certain customer accounts, but the reasons are never related to the political or religious positions of the individuals involved.
Dimon noted that banks are required by law to provide information to the government under court subpoenas, not just 'when they feel like it.' There is frequent criticism that banks' 'cooperation with government investigations' is political maneuvering, but Dimon emphasized that this is a legal obligation that all financial institutions must adhere to, stating, 'I have followed the same regulations under several administrations, many of which I do not agree with.'
He criticized the current 'account closure system' itself for having problems, as relying on media reports, risk assessments, or suspicious activities can lead to banks terminating services, leaving customers at a loss. 'I don't like account closures; I've been calling for reforms of this system for 15 years.'
The U.S. executive branch has launched an investigation, intensifying the tug-of-war between financial regulation and politics
As crypto companies and conservatives complain of long-term exclusion from the financial system, the U.S. government has begun to intervene. President Trump signed an executive order in August this year, directing financial regulators to investigate whether there are account closure practices against the digital asset industry or specific political groups.
Dimon revealed that JPMorgan has proposed reform suggestions to the government, including reducing unnecessary data reporting requirements and lowering the likelihood of banks being forced to close accounts under legal pressure. He emphasized that the root of the problem lies not with banks, but with a regulatory system that is too rigid, preventing financial institutions from alleviating risk management pressure.
In the context of heated public opinion and heightened regulatory scrutiny, the account closure controversy at JPMorgan has become a matter of 'financial free speech' that Wall Street, the tech sector, and the crypto industry are jointly concerned about. With investigations by the executive branch underway, how banks balance compliance, risk management, and social perception may become a focal point of regulation in the next phase.
This article is authorized for reprint from (Crypto City)
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