- Trump has claimed $5 billion in damages via a lawsuit against JPMorgan and CEO Jamie Dimon.
- The US President has alleged political account closures.
- The crypto market is down to $3 trillion in market cap.
US President Donald Trump has now filed a lawsuit against JPMorgan Chase and CEO Jamie Dimon. The lawsuit has claimed damages worth billions of dollars. This is in addition to earlier conflicts of his administration with Jerome Powell and Lisa Cook. For the crypto market, this reflects an increase in volatility complexities around the segment.
Trump Vs. JPMorgan CEO Jamie Dimon
Donald Trump has filed a lawsuit claiming $5 billion worth of damages. He has alleged that the bank and Dimon distanced themselves from him plus his affiliated companies through political account closures in 2021.
Allegations in the lawsuit are that the bank’s unilateral decision was political and social, adding that accounts were debanked under the belief that the political tide favored the move in that moment. JPMorgan and Dimon have also been alleged of notifying plaintiffs on February 19, 2021, that their accounts would be closed in 2 months.
JPMorgan has responded to this lawsuit by saying that accounts were closed neither for political reasons nor for religious reasons. Accounts were closed after they were found to have legal or regulatory risks for the company.
In Continuation to Previous Contests
A lawsuit against JPMorgan and CEO Jamie Dimon is in addition to Trump’s earlier contests with Fed Chair Jerome Powell and Federal Reserve Governor Lisa Cook.
In Powell’s case, the Fed Chair was charged with a criminal investigation through the Justice Department of the US. It is believed here that an investigation was launched after Jerome refused to cut rates, which would have essentially aligned with Trump’s wish of doing so.
In Lisa Cook’s case, reports cite the same thing of refusing to cut lending rates before being threatened with an ouster. The US Supreme Court has weighed in on this matter, saying that such a move could negatively influence the central bank’s independence. Furthermore, the court has noted that the ouster of Cook in this manner could trigger a real-world economic crisis.
Volatility in Crypto Market
Fundamentally, a rift between a country’s top leader and top financial representatives leads to volatility in the financial world. US Stock indexes have been able to close two consecutive days on a higher point. However, the same argument is invalid for the crypto market. It has declined by 1.46% in terms of market cap, sliding to $3 trillion at the moment.
BTC and ETH have lost significant value by declining by 1.08% and 2.98% in the last 24 hours, respectively. Bitcoin tokens are now at $88,920.05, and Ethereum tokens are listed at $2,919.98. Tom Lee earlier warned about the possibility of crypto markets facing a painful correction in 2026.
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