Headline: Trump sues JPMorgan for $5B, reigniting debate over “debanking” — a flashpoint for crypto industry Former U.S. President Donald Trump has filed a $5 billion lawsuit against JPMorgan Chase and CEO Jamie Dimon, alleging the bank closed multiple accounts tied to him in 2021 for political reasons — a move that revives concerns about bank power and the practice of “debanking,” an issue closely watched by the crypto sector. What happened - The lawsuit, filed January 22 in Miami‑Dade County Court, says JPMorgan abruptly terminated several accounts in February 2021 without warning or remedy. Plaintiffs include limited liability companies operating in hospitality and golf businesses. - The complaint claims the closures were politically motivated, stating the bank “engaged in debanking of their accounts because it believed the political climate at the time favored such a decision,” and frames the action as discrimination based on political views. JPMorgan’s response - JPMorgan denies the allegations. In a statement the bank said it “does not close accounts for political or religious reasons,” adding that account closures occur when accounts present legal or regulatory risks. - The bank expressed regret over having to take such actions and said it has urged both current and prior administrations to alter rules it says force these decisions. JPMorgan also said it supports efforts to keep the banking system free from political influence. Why crypto watchers care - “Debanking” — when financial institutions sever relationships with customers — is a long-standing concern in crypto, where exchanges, custodians and other firms rely on consistent banking relationships to move fiat on and off ramps. The industry has argued that arbitrary or opaque account closures can cripple operations and push activity into less-regulated channels. - While this lawsuit centers on Trump and his business entities, the allegations underscore broader questions about how banks exercise discretion over customer relationships and how regulatory pressure can drive de‑risking behavior that affects both traditional businesses and crypto firms. What’s next - The case is now pending in Miami‑Dade County Court. If it proceeds, it could further fuel political and regulatory debates about the limits of bank decision‑making and the protections — or lack thereof — for customers cut off from the financial system. Read more AI-generated news on: undefined/news