Updated 14 Apr, 2021

JPMorgan CEO Jamie Dimon Pushes for Crypto Regulation

JPMorgan CEO

Key Takeaways

  • JPMorgan CEO Jamie Dimon calls for swift cryptocurrency regulation
  • In his annual report, he mentions cryptocurrency regulation is a serious emerging issue

Jamie Dimon Calls for Clear-Out Crypto Regulations

JPMorgan CEO Jamie Dimon, famous for criticizing bitcoin and the whole cryptocurrency concept, is calling for clear-cut regulations of crypto assets. Jamie Dimon, as head of JPMorgan, recently published his annual letter to shareholders. In the letter, he notes that the regulatory status of bitcoin and cryptocurrencies, as a whole, is something that “needs to be dealt with”.

“There are serious emerging issues that need to be dealt with—and rather quickly: the growth of shadow banking, the legal and regulatory status of cryptocurrencies, the proper and improper use of financial data, the tremendous risk that cybersecurity poses to the system, the proper and ethical use of AI, the effective regulation of payment systems,” he wrote.

“We need competition because it makes banking better,” Mr. Dimon says, referring to the crypto market and the growing number of fintech companies that digitalize banking. “And we need to manage the emerging risks with level playing field regulation in a way that ensures safety and soundness across the industry,”

JPMorgan Changes Their Tune

On the issue of governments imposing regulations over the emerging cryptocurrency market, Mr. Dimon said that “regulators need to decide what they want included in the regulatory system—and what they don’t want included.”

JPMorgan’s CEO has been vocal in the crypto space since the 2017 boom and bust cycle. Back then, he called bitcoin “a fraud”. More recently, the investment firm he leads has been looking into the cryptocurrency industry with the intention to get involved due to increasing demand by clients who are eager to invest in the market.

Near the end of last year, JPMorgan recognized bitcoin as an alternative to gold. Moreover, according to the firm, “the potential long-term upside for Bitcoin is considerable.”