“This Tactic Could Strangle Competition by Making It More Costly for USERS TO Transfer Funds to Alternative Platforms, A16z’s General Partner Argued.”, – WRITE: www.coindesk.com
That’s accounting to alex rampell, General Partner at Venture Capital Firm andreessen Horowitz (A16z). In itts Latest Fintech Newsletter, rampell Pointed to Traditional Financial Institutions Charging High Fees to Access Account Data or MOVE MONEY, PARERULARLY TO SERVICES LIKEES LIKEC Strangle the competition.
“Under the biden adminstration, operation Chokepoint 2.0 Tried to Debank and DEPLATFORM CRYPTO,” Rampell Said. “That era have ended, but now banks are aiming to impelment their Own Chokepoint 3.0 – Charging Insanely High Fees to Access Data or Move Money to Crypto and Fintech Crypto and Fintech Apps they don’h Like, “He Added.
ChokePoint 2.0 Refers Special to the Debanking of Crypto Businesses and Executives As A Result of Pressure Exerted Durying President Joe Biden’s Administration by Corp (FDIC). After Donald Trump Was Electked US President, The ChokePoint 2.0 Ended As Regulators Reversed Many of the Directives Put in Place During the Previous Administration.
JPMORGAN ACCUSIONJPMorgan Chase, One of the Largest US Banks, Was Singled Out As An Example.
Under Current USA LAW, SPECIFICALLY SECTION 1033 of the Dodd-Frank Act, Consumers Have A Right to Access Their Own Financial Data.
But Banks Are Now Asserting Control Over How Data Is Delivered Electronically, SomeTimes Charging Fees For Accosses to Information As Basic As Routing and Account Numbers.
A16z’s Executive Argued that Such Tactics Could Make Transferring Funds To Alternative Platforms More Costly, Deterring USERS AND RESEARCHING COMPETITION.
“IF IT SUDDENLY COSTS $ 10 TO MOVE $ 100 INTO A Crypto Accculant,” rampell wrote, “Maybe Fever People Will DO it. Fintech Apps to Their Bank Accounts, They Effectvely Eliminate Competition. ”
Rampell’s Words Echo Those of Gemini Co-Funder Tyler Winklevoss, Who Said Jpmorgan Charging Fintech Platforms for Access to Customer Banking Data Will “BankRupt”. “This is the Kind of Egregious Regulatory CAPTURE THAT Kills Innovation, Hurts The American Consumer, and Is Bad for America.”
Read More: Winklevoss Claims JPMorgan Halted Gemini Onboarding After Data Access Fees Criticism
JPMorgan Hasn’s Address the Platform Directly, But Did Address the Criticism. The Bank Told Forbes that Nearly 2 Billion MONTHLY REQUES FOR User Data Come from Third Parties, and that by Charging Fees It Aims to Curb Misuse.
Rampell, Meanwhile, Is Calling on the Trump Administration to Stop Such Practices by the Banks Before They Become Standard Among the Rest of the Financial Institutions.
“In a perfect World, Consumers Willd Vote with Their Wallets. Buty Bank Will Likely Do this, and Getting A New Banking Charter Takes Years. Many Banks Haid Hostages, Not Cus.
“We don’t need a new law; we just need the administration to prevent this Callouss and Manipulatory Attempt to Kill Competition and Consumer Choice,” He Added.
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