Mystery Grows as JPMorgan Closes Crypto Accounts Even After Trump's Prohibition

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Mystery Grows as JPMorgan Closes Crypto Accounts Even After Trump's Prohibition

Bitget-RWA2025/11/24 07:08

By:Bitget-RWA

- JPMorgan's closure of Strike CEO Jack Mallers' accounts reignites debates over crypto-linked "debanking" despite Trump's August executive order banning such restrictions. - The bank cited "concerning activity" under the Bank Secrecy Act but refused to explain its decision, echoing industry concerns about politically influenced banking practices. - Critics warn such actions risk pushing crypto activity overseas and highlight unresolved tensions between regulatory compliance and innovation in digital asset

JPMorgan Chase’s recent closure of Strike CEO Jack Mallers’ personal bank accounts has reignited debate over whether American banks are still limiting services to individuals connected to cryptocurrency, despite a directive from President Donald Trump that forbids such actions

as reported

. Mallers revealed the account closure in September, prompting widespread industry discussion about how banks are interpreting federal orders and whether the issue of “debanking” in the crypto space remains unresolved.

In a letter sent to Mallers by

JPMorgan

, the bank cited vague “concerning activity” found during standard monitoring as the reason for the closure. While referencing requirements under the Bank Secrecy Act, the bank

did not elaborate further

. Mallers, who has openly criticized the move, pointed out that the bank repeatedly refused to clarify its decision, saying, “They told me they weren’t permitted to explain.” His remarks reflect broader industry concerns about banking decisions influenced by political factors, a phrase used to describe

allegedly politically driven pressure

on banks during the previous administration.

This account closure seems to run counter to Trump’s executive order from August, which specifically bars banks from refusing services to crypto-related businesses. The administration described the order as a measure to prevent unfair treatment, but Mallers’ experience underscores ongoing doubts about its implementation. Jason Allegrante, Fireblocks’ Chief Legal and Compliance Officer,

cautioned that such limitations

could drive crypto operations overseas and questioned whether leaving these decisions to regulators is just.

This event follows earlier accounts of debanking involving Trump and his family. In June,

it was claimed that major banks refused services

to Trump for political reasons, and in May, his son Eric revealed that several banks closed accounts during Trump’s initial term. These incidents highlight the ongoing friction between political influence and access to financial services, especially in sectors like cryptocurrency that face intense scrutiny.

JPMorgan’s decision also comes at a time of strong financial results.

The company posted a 16% annual rise

in diluted earnings per share for the third quarter of 2025, with both return on equity and capital efficiency showing slight gains. Still,

its Commercial & Investment Bank division’s profitability and capital efficiency

— buoyed by a 14% increase in investment banking income — indicate the bank’s continued focus on conventional financial services.

As the crypto industry faces ongoing regulatory and institutional hurdles, Mallers’ situation has become a central example in the debate over how to balance regulatory compliance with financial innovation. With no definitive answers yet, the case raises important questions about whether digital asset companies will have reliable access to banking and if federal protections will be effectively enforced.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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