Lummis Condemns JPMorgan’s Debanking of Strike
Senator Cynthia Lummis has accused JPMorgan of reviving “Operation Chokepoint 2.0” after the bank closed Strike CEO Jack Mallers’ accounts without a clear explanation. JPMorgan flagged unspecified “concerning activity” but provided no details. Pro-crypto figures including Bo Hines and Adam Livingston criticized the move, with Livingston calling for a JPMorgan boycott. JPMorgan analysts also warn that MicroStrategy (MSTR) could face $2.8–$8.8 billion in passive outflows if MSCI excludes companies holding over 50% in digital assets by January 15. Bitcoin dipped to $80,000 amid the controversy before rebounding to around $87,830. The events highlight growing friction between traditional banks and digital assets and suggest potential short-term selling pressure on Bitcoin. Major banks are nonetheless expanding crypto services, with JPMorgan’s Onyx blockchain and Bank of America’s plans for a USD stablecoin.
Bearish
The sudden closure of a major crypto service account and calls for a JPMorgan boycott heighten regulatory and reputational risk for Bitcoin. Combined with the potential $2.8–$8.8 billion passive outflow risk from MSCI index changes, trader sentiment may turn cautious. These factors are likely to trigger short-term selling pressure on Bitcoin despite broader institutional adoption trends.