JPMorgan’s Data Fees Could Crush Crypto Startups, Winklevoss Warns

- JPMorgan imposes new charges on access to banking data, potentially destabilizing the fintech and crypto sectors. - Tyler Winklevoss calls the fees a calculated effort to stifle innovation and smaller competitors. JPMorgan Chase recently announced plans to charge fees for third-party access to consumer banking data, a move that ends its practice of free data sharing and introduces sweeping consequences for the crypto and fintech industries. On July 20, 2025, AInvest and Mitrade reported that the fee changes could cause service price hikes of up to 1,000%. As a result, crypto startups and smaller fintech firms may find these costs unsustainable, which could significantly reshape competition within both sectors. The new fee structure directly targets data aggregators like Plaid and MX, which act as intermediaries to facilitate access to banking data for financial apps. Traditionally, banks provided consumer data to these aggregators free of charge. However, JPMorgan’s new policy will likely shift these costs to fintech clients and, ultimately, to consumers. Industry insiders warn this dramatic increase could make many fintech services financially inaccessible, thereby stifling innovation and forcing smaller firms to exit the market. In a heated response, Tyler Winklevoss, co-founder of the crypto exchange Gemini, criticized JPMorgan, accusing the bank of “trying to kill crypto startups” by restricting low-cost connections between traditional banking and decentralized platforms. The fees pose particular risks for small firms like Coinbase and Kraken, which rely heavily on affordable data access for customer onboarding and efficient transaction processing. Furthermore, executives caution that these fees could exceed years of revenue for smaller firms, threatening their survival and limiting options for consumers who use JPMorgan accounts. JPMorgan CEO Jamie Dimon defended the policy, stating that the fees are necessary to cover the rising costs of safeguarding customer data and maintaining the required data-sharing infrastructure. Dimon also argued that aggregators have exploited JPMorgan’s resources for years without shouldering their fair share of expenses. However, critics like venture capitalist Alex Rampell labeled the move as anti-competitive. Rampell warns that other banking giants may follow suit if JPMorgan’s approach proves effective, which would further squeeze smaller players in the industry. This development coincides with changing U.S. regulatory attitudes toward data access. The Consumer Financial Protection Bureau (CFPB) previously enforced free data-sharing practices under Section 1033 of the Dodd-Frank Act. Recently, however, the CFPB vacated its rule, creating ambiguity that has paved the way for banks like JPMorgan to enforce data fees. This regulatory reversal has sparked legal disputes and reignited debates over data ownership, as financial institutions increasingly assert control over access rights in the U.S. banking system. Established fintech companies like PayPal and Block are likely better equipped to absorb the impact of these fees, while the new policy risks pushing out their smaller competitors and escalating consolidation in the sector. A potential reduction in innovation and consumer choice could disproportionately affect emerging segments like crypto exchanges and blockchain platforms. According to CoinMarketCap on July 20, Bitcoin (BTC) was trading at $29,168 as of 12:00 UTC, with its 24-hour trading volume up by 3.2%. Meanwhile, Ethereum (ETH) was priced at $1,840, a 2.8% gain in the same period.