Strike CEO debanked by JPMorgan, Lummis sounds ‘Chokepoint 2.0’ alarm

On-chain analyst James Check has warned that Bitcoin faces a potential political crisis alongside technical challenges if quantum computing technology advances. He emphasizes that the real danger lies in achieving consensus within the Bitcoin community rather than in the mathematical vulnerabilities of the cryptocurrency itself.

JPMorgan has severed its banking relationship with Strike CEO Jack Mallers, who claims that his support for Bitcoin and criticism of Jeffrey Epstein were the reasons behind this decision. Mallers reported that his accounts were closed without explanation, raising concerns about the bank's practices.

MSCI has initiated a consultation that could lead to the exclusion of companies holding 50% or more of their balance sheet in Bitcoin or other digital assets from its global equity indexes. This move has raised concerns about forced selling risks, particularly for Strategy ($MSTR), which is heavily leveraged in Bitcoin investments. The market reacted negatively, exacerbated by a bearish note from JPMorgan.

Strike CEO Jack Mallers reported that JPMorgan closed his accounts without providing an explanation, raising concerns about the implications of Operation Chokepoint 2.0 for cryptocurrency firms. This incident has reignited fears of debanking practices targeting the crypto sector, which have been a contentious issue in recent years.

JPMorgan has upgraded its outlook on Bitcoin miners Cipher and CleanSpark while cutting targets for Marathon Digital (MARA) and Riot Blockchain (RIOT), citing increased risks of shareholder dilution. This shift reflects a growing trend among Bitcoin miners to diversify into high-performance computing (HPC) to meet the rising demand for AI compute resources.

JPMorgan is facing renewed scrutiny as it navigates the complexities of debanking and the rivalry between decentralized finance (DeFi) and traditional finance (TradFi). Recent account closures, including that of Strike CEO Jack Mallers, have raised concerns about the bank's stance on cryptocurrency, particularly amid ongoing controversies surrounding its ties to Jeffrey Epstein.

JPMorgan Chase has closed the accounts of Strike CEO Jack Mallers, citing 'concerning activity,' amid ongoing controversies surrounding the bank's ties to Jeffrey Epstein. This incident has reignited fears of debanking within the cryptocurrency sector, particularly affecting prominent figures and companies in the industry.

JPMorgan has upgraded its outlook on Bitcoin miners Cipher and CleanSpark, highlighting a positive shift as high-performance computing (HPC) partnerships reshape the mining sector. This upgrade comes amid a broader trend of increasing collaboration between traditional finance and cryptocurrency mining operations.