JPMorgan Fraud Concerns Force Strike CEO Out; Lummis Warns on Banking Rules
JPMorgan flagged fraud concerns tied to a payments partner, a development that led to the ouster of Strike's CEO and immediate reputational and operational pressure on the company. The bank's actions illustrate how critical correspondent-banking relationships remain for crypto payments firms; losing access or facing heightened scrutiny can disrupt settlement flows, customer onboarding and merchant acceptance quickly.
Senator Lummis warned that aggressive banking restrictions risk driving the digital asset industry overseas, underscoring a broader policy tug-of-war between enforcement and market competitiveness. The episode highlights the need for clearer rules of the road: without predictable regulatory and banking access, startups may relocate, liquidity could fragment, and US influence on crypto standards may wane — all of which add short-term uncertainty for users, exchanges and institutional partners.