Pick a side: JPMorgan opens leveraged Bitcoin access to retail while closing crypto CEO’s account

JPMorgan is simultaneously advancing Bitcoin institutionalization for clients while increasing scrutiny on crypto-native principals. On one front, the bank is introducing structured notes offering 1.5x leveraged gains linked to spot Bitcoin ETF performance (like IBIT) and plans to allow institutional clients to use BTC and ETH holdings as collateral for loans by year-end. These products are aimed at advised or accredited clients through wealth management channels.

In stark contrast, Strike CEO Jack Mallers reported that JPMorgan closed his personal Chase accounts without explanation, citing only "concerning activity" found during routine monitoring under the Bank Secrecy Act (BSA). Mallers' father had been a private client for over 30 years.

The situation highlights a split in how banks manage crypto: product teams integrate regulated exposure for wealth clients, while compliance teams maintain strict BSA/AML monitoring. Although recent executive orders aim to prevent "debanking" based on political or industry affiliation, they do not override a bank's obligation to monitor for suspicious activity. JPMorgan appears to be drawing a line between serving clients who hold crypto assets and distancing itself from the executives who build the underlying infrastructure.

(Source：CryptoSlate)