TLDR Senator Cynthia Lummis criticized JPMorgan for its anti-crypto stance and called for an end to Operation Chokepoint 2. 0. Lummis argued that JPMorgan’s actions damage public trust in traditional banks and hinder the growth of digital assets in the U. S. The dispute started when JPMorgan closed the accounts of Jack Mallers, CEO of the Bitcoin payment firm Strike, without a clear reason. Operation Chokepoint 2. 0 aims to prevent blockchain firms from accessing banking services, which critics argue harms the crypto industry. Lummis expressed concern that the U. S. risks losing digital finance leadership by pushing innovation out of the country. U. S. Senator Cynthia Lummis has sharply criticized JPMorgan for its stance against cryptocurrency. She called for an end to Operation Chokepoint 2. 0, a program aimed at blocking firms in the blockchain space from accessing banking services. Lummis argued that the bank’s actions harm public trust in traditional banking and hinder the growth of digital assets in the United States. The dispute began when JPMorgan closed the accounts of Jack Mallers, the CEO of the Bitcoin payment firm Strike. Mallers, a vocal advocate for cryptocurrencies, criticized JPMorgan for failing to provide a clear reason for the closure. JPMorgan cited “concerning activity” discovered during routine reviews but did not offer further details. Operation Chokepoint 2. 0 Targets Crypto Industry Operation Chokepoint 2. 0 is a program that seeks to prevent firms in the cryptocurrency sector from accessing banking services. The initiative follows the U. S. Department of Justice’s Operation Chokepoint, which was launched in 2013. Critics argue that this effort, although officially concluded under the Trump administration, continues to negatively affect the crypto industry. Lummis expressed concerns that such programs push digital asset firms to other countries with more favorable regulations. “We are pushing innovation out of the U. S. with policies like this,” she said. Her comments reflect growing frustration among lawmakers who believe the U. S. risks losing its leadership role in digital finance. JPMorgan’s Evolving Relationship with Cryptocurrency JPMorgan’s relationship with cryptocurrencies has evolved. The bank has launched its own stablecoin, JPM Coin, and has explored blockchain technology. However, JPMorgan remains cautious about fully embracing cryptocurrency as an asset class. Despite these efforts, JPMorgan continues to express concerns over the risks associated with digital assets. Lummis suggested that the bank’s stance needs to adapt to meet the growing demand for digital assets in the financial sector. “The traditional financial system must recognize the role of digital assets,” Lummis added. The closure of Mallers’ accounts highlights the tension between cryptocurrency supporters and traditional financial institutions. While JPMorgan’s policies remain a point of contention, Lummis believes that change is necessary for the future of U. S. digital finance.
https://blockonomi.com/senator-cynthia-lummis-calls-for-end-to-operation-chokepoint-2-0-criticizes-jpmorgan/
Tag: traditional financial institutions
UAE’s Ultra-Rich Are Driving a Fierce Crypto Revolution in Private Banking
The traditional wealth management and private banking sectors—often cautious and skeptical when it comes to cryptocurrency investing—are facing increasing pressure to offer digital assets to wealthy clients. This demand is especially pronounced in crypto hotspots like Dubai, Switzerland, and Singapore.
### High Demand for Crypto in the UAE
Swiss software firm Avaloq, which serves numerous private banks and wealth managers, recently examined high-net-worth (HNW) investing attitudes in the UAE. Based on surveys conducted in February and March 2025 involving 3,851 investors and 456 wealth professionals, Avaloq found that demand for digital assets in the region is unusually high. Specifically, 39% of wealthy clients in the UAE hold cryptocurrency. However, only 20% of those crypto investors use a traditional wealth manager.
Known for its oil-rich ultra-high-net-worth family offices and a low-tax environment attractive to expats, the UAE is rapidly becoming one of the world’s hottest crypto hubs. Dubai, for instance, offers a clear regulatory framework through the Virtual Assets Regulatory Authority (VARA), established in 2022.
### Crypto Education Within Families
Notably, the younger generations of ultra-wealthy families are now educating their elders about crypto investments. For example, even well-known families like the Trumps are part of this trend.
Against this backdrop, Avaloq’s UAE snapshot revealed that 63% of investors have either switched wealth managers or are considering doing so. The primary reason? Their questions about cryptocurrency remain unanswered.
### Traditional Wealth Managers Playing Catch-Up
“As crypto has evolved as an asset class, there has been a growing need among private banking relationship managers to cater to clients who are basically not being served,” said Akash Anand, Head of Middle East and Africa at Avaloq, in an interview with CoinDesk. “Hence, there has been a rush among traditional wealth managers to get equipped to offer crypto.”
### The Roadblocks to Crypto Adoption
Why have traditional financial institutions been slow to serve these clients? The answer lies largely in the nature of cryptocurrency itself—it is highly volatile, and the underlying technology can be complicated to navigate.
In addition to crypto’s notorious price swings, managing wallets, private keys, and unfamiliar custody arrangements presents significant challenges for both managers and clients. Avaloq’s survey found that among UAE investors who do not hold cryptocurrency, the top reasons cited were:
– Market volatility (38%)
– Lack of knowledge (36%)
– Distrust in exchanges (32%)
### Meeting the Gap: Avaloq’s Solutions
Avaloq is capitalizing on the growing gap between client demand and the products offered by traditional institutions. Over the past several years, the company has successfully integrated crypto custody platforms within financial institutions, leveraging crypto safekeeping technology from Fireblocks and collaborating with firms such as BBVA and Zurich Cantonal Bank.
### A Changing Landscape for Wealth Managers
As investor appetite shifts toward greater digital asset exposure, financial institutions are beginning to take notice. According to Anand, there is “a healthy pipeline” of private banks and financial firms looking to either customize their core systems with Avaloq’s crypto custody technology or adopt its pre-configured platforms.
However, many opportunities across the wealth sector remain untapped. “Firms are looking to create a one-stop shop integrated with their existing e-banking systems,” said Anand, emphasizing the growing demand from investors.
### Crypto Millionaires on the Rise Globally
Global interest in digital assets is booming. The number of crypto millionaires worldwide surged to 241,700 in 2025—a 40% increase from the previous year—according to the Crypto Wealth Report 2025 by Henley & Partners. The report ranks Singapore, Hong Kong, the U.S., Switzerland, and the UAE as the top five destinations for digital asset investors.
### Digital Assets: A Serious Contender
Following the spectacular bull run of 2021 and subsequent market corrections, the digital asset sector has matured significantly. It has evolved into a serious investment class, increasingly dominated by institutional money.
“There have been some quite spectacular crashes involving certain crypto exchanges, and that has created a lot of trust issues,” Anand added. “Our research shows that there is an opportunity for banks and wealth managers to step in and provide that trust in the form of fully integrated, secure, and compliant custody.”
As the landscape evolves, traditional wealth managers who adapt to incorporate digital assets may find themselves well-positioned to serve an emerging generation of crypto-savvy clients.
https://bitcoinethereumnews.com/crypto/uaes-ultra-rich-are-driving-a-fierce-crypto-revolution-in-private-banking/?utm_source=rss&utm_medium=rss&utm_campaign=uaes-ultra-rich-are-driving-a-fierce-crypto-revolution-in-private-banking