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Crypto agnostic Jamie Dimon reiterates his cynicism towards the nascent investment class, warning investors to “stay away from it.” However, the JP Morgan boss has no qualms about selling it to clients.
In what is a love-hate relationship with cryptocurrency, Dimon, once again, sounds the alarm on cryptocurrency. But based on his willingness to offer it to clients, it’s clear he thinks crypto isn’t going away.
Crypto Buyer Beware
The JP Morgan boss blasted Bitcoin in the recent past, calling cryptocurrency a fraud and worse than tulip bulbs. He even went as far as saying he would fire any member of staff trading it. His justification? Because it’s stupid and against our rules.
That was four years ago. Now, JP Morgan staff are openly active in the crypto space. For example, earlier this year, a report by JP Morgan analysts gave a $146k price prediction for Bitcoin.
More recently, the U.S investment bank also announced plans to offer an actively managed Bitcoin fund to wealthy clients.
The move echoes the approach by many top U.S banks, who have also laid out plans to enter cryptocurrency markets. Including Morgan Stanley and Goldman Sachs.
Industry analysts point out that JP Morgan has been taking the biggest strides into cryptocurrency out of all the U.S banks.
“JPMorgan has been taking some of the biggest strides, adding Bitcoin exchanges Coinbase Inc. and Gemini Trust Co. as banking clients last year.”
Nonetheless, while no longer openly hostile to crypto, the JP Morgan boss still has his reservations. In a congressional testimony to the U.S. House Financial Services Committee, Dimon advised people to stay away from it.
Despite his doubts, Dimon acknowledged that his personal opinions on the matter do not affect what services JP Morgan offers its clients. With high client demand, he said it’s not his place to tell people how to spend their money.
“This goes back to how you have to run a business. I don’t smoke marijuana but if you make it nationally legal, I’m not going to stop our people from banking it.”
Dimon Wants A Crackdown
During the Investment Company Institute (ICI) annual meeting earlier this week, Dimon called on regulators to bring more oversight to the crypto industry. Adding, authorities continue to drag their feet when it comes to governing the space.
“There should be legal, regulatory, tax, related framework, AML, around crypto. It’s now worth $2 trillion. When are they going to say, “Oh my God, this is worthy of our attention.”
He urges regulators to act now before it gets too big, and, as he believes, past the point when crypto criminals are ruining all our lives.
Even so, it’s clear Dimon knows crypto isn’t going away. Why not join them, if you can’t beat them?