Gemini co-founder Tyler Winklevoss has it I’ve taken it X Social Media Platforms slam banking giant JP Morgan for “killing” cryptocurrency companies.
This comes after Bloomberg reported earlier this week that America’s biggest banks will begin requiring fintech companies to pay fees to make it accessible to JPMorgan customers’ account information.
With this move, banking giants are trying to deprive the right to access bank data for free via third-party platforms such as Plaid, which act as an intermediary between bank accounts and various financial applications.
Winklevoss believes that modern demand will actually destroy fintech companies that serve as the foundational layer for many financial companies. Major cryptocurrency exchanges such as Gemini and Coinbase also rely on such services to fund user accounts.
Gemini co-founders also pointed out that “open banking rules” allow access to financial data through third-party apps. However, the banking industry has launched a legal battle with the Consumer Financial Protection Bureau (CFPB) and claims that the rules exceed the institution’s statutory authority. In May, the CFPB confirmed it would kill rules that required data to be shared with third parties upon request.
The banking industry is concerned about the regulatory burden of widespread data sharing.
but, Winklevoss The move was described as “a terrible restriction capture.”
“It’s a regulatory capture that kills innovation, hurts American consumers and is so bad for America,” Winclevos said.