JPMorgan CEO Jamie Dimon believes BTC regulation will pose a serious emerging issue during a shareholder letter as we can see more in our latest bitcoin news today.
Jamie Dimon believes BTC regulation is a serious issue but that legal and regulatory clarity is needed with cryptocurrencies, reiterating the threat of fintech. The legal and regulatory status of BTC and other crypto assets is something that has to be dealt with in an instant according to Dimon. He previously called BTC a “fraud” back in 2017 and made comments in the letter to the shareholders today:
“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.”
The CEO of the world’s biggest bank said that the regulators have to decide what they want to be included in the system and what they don’t want included, outlining how complex the regulatory system in the US is. Dimon has a point because different government agencies appear to have different agendas with sometimes contradictory positions. One example is the US SEC which claims authority over the ETH-based tokens sold in the US to raise funds but the CFTC oversees everything regarding BTC like futures and options contracts.
The IRS, FinCEN, and other regulatory agencies all have their own agendas regarding crypto. With traditional financial investors showing interest in crypto, banks are hoping for better rules. Goldman Sachs CEO David Solomon also said that he expects the crypto world to experience a big evolution in regards to regulation and that the current ones prevent the bank from acting as a principle around crypto.
$JPM Chairman and CEO, Jamie Dimon, releases his Annual Letter to Shareholders.
— J.P. Morgan (@jpmorgan) April 7, 2021
Dimon said that the traditional banks are also under threat because of the fintech banks and that JPMorgan is trying to adapt to new challenges. The bank also called a battle for digital supremacy and according to the banks, other financial institutions have to buck up their ideas if they want to compete with the expanding fintech sector or they will be left out in the race. And the threat is real. JPMorgan estimated that there are now 58 fintech companies with a market cap of over $1 billion and are all competing for customers with efficient services.