tl;dr
Gemini co-founder Tyler Winklevoss accused JPMorgan and major banks of trying to undermine the Consumer Financial Protection Bureau’s Open Banking Rule, which allows consumers to access and share financial data via third-party apps. Winklevoss claims these banks' legal challenges threaten consumer c...
Gemini co-founder Tyler Winklevoss has publicly accused JPMorgan and other major banks of attempting to stifle financial innovation by targeting consumer rights related to data access. In a post on X dated June 19, Winklevoss warned that Wall Street institutions are working to dismantle the Consumer Financial Protection Bureau’s (CFPB) “Open Banking Rule.”
The Open Banking Rule, based on Section 1033 of the Consumer Financial Protection Act, gives consumers the ability to access and share their financial data through third-party applications like Plaid. Despite this, some large banks are challenging the rule legally. Winklevoss argues that this is more than just a regulatory dispute—it is an attack on consumer choice and cryptocurrency advancement. He claims that the legal efforts will bankrupt fintech companies that facilitate linking bank accounts to crypto exchanges such as Gemini, Coinbase, and Kraken, thereby complicating the process of funding accounts with fiat money to purchase cryptocurrencies.
Further, Winklevoss suggests that JPMorgan’s actions run counter to former President Donald Trump’s aim to position the United States as a global leader in crypto and financial innovation, accusing JPMorgan CEO Jamie Dimon and his associates of undermining this mandate. This viewpoint has resonated within the crypto community, gaining political support from lawmakers like US Senator Cynthia Lummis and echoing concerns voiced by Kraken co-CEO Arjun Sethi.
Sethi has criticized JPMorgan’s proposed fees for data access, describing them as a “strategic power grab” rather than a true technological advancement. He highlights the risk that monetizing data access could incentivize fragmentation and limit innovation, as infrastructure providers might prioritize revenue over openness and interoperability.
Contrasting this with crypto technology, Sethi explains that decentralized networks provide permissionless access through public ledgers, cryptographic identities, and transparent smart contracts. These elements ensure that data is accessible to all participants equally without reliance on intermediaries, fostering an open ecosystem where protocols can interact seamlessly.
Despite crypto’s potential, Sethi cautions that the industry must avoid replicating centralized power models it intends to disrupt. He emphasizes the importance of protecting the sector’s foundational principles by promoting open access, collaborative infrastructure, and investing in protocols rather than restrictive, closed platforms. Sethi encourages building systems that extend beyond mere defensibility through restrictions, advocating for shared infrastructure that supports broader innovation and inclusion within the crypto space.