JPMorgan Dimon’s Bitcoin Reversal
“They are decentralized Ponzi schemes,” Jamie Dimon, CEO of JPMorgan Chase & Co, earlier said, “I’m a major skeptic on crypto tokens, which you call currency, like Bitcoin.”
“I don’t think you should smoke, but I defend your right to smoke,” Dimon stated. “I defend your right to buy bitcoin.”
The revelation comes after the banking giant JPMorgan Chase rolled out its own stablecoin, called JPMD, that represents real bank deposits. Unlike regular stablecoins (which anyone can use), this one is strictly for the bank’s big institutional clients.
In May, the banking giant revealed that it is taking a small but important step into the crypto world by allowing clients to invest in Bitcoin, despite the fact that CEO Jamie Dimon remains one of its loudest critics.
At the bank’s investor day, Dimon confirmed that JPMorgan will let clients buy bitcoin, but with strict limits: the bank won’t hold the cryptocurrency itself, only display it on client statements.
This move comes after competitors like Morgan Stanley approved its advisors to offer spot bitcoin ETFs to wealthy clients.
However, despite major developments, Dimon has not softened his stance. He repeated his long-held concerns, calling bitcoin useful mainly for crime, tax evasion, and illicit finance, and even compared owning it to smoking: “I don’t think you should smoke, but I defend your right to smoke. I defend your right to buy bitcoin.”
In the past, he dismissed bitcoin as “worthless” and a “pet rock.” Yet, JPMorgan is still exploring crypto services, including bitcoin ETFs.
On the other hand, the ‘Bank of America’ CEO Brian Moynihan stated that “If the rules come in and make it a real thing that you can actually do business with, you’ll find that the banking system will come in hard on the transactional side of it.”
Earlier today, the Federal Reserve, the Office of the Comptroller of the Currency (OCC), and the Federal Deposit Insurance Corporation (FDIC) issued joint guidance clarifying that US banks are permitted to hold cryptocurrency on behalf of customers. However, they have to comply with strict regulatory conditions.
In the official announcement, the regulators made clear that banks can custody crypto assets, whether in a fiduciary role (such as managing trusts or investment accounts) or a non-fiduciary capacity (like basic storage).
Also Read: US Regulators Approve Bank Crypto Custody With Heavy Strings
