On Monday JPMorgan CEO Jamie Dimon revealed that clients of the bank can now buy bitcoin, despite his long-held skepticism about cryptocurrencies.
JPMorgan is now among other major banks, including Morgan Stanley, to allow its financial advisors to pitch clients on some bitcoin ETFS.
Many banks are now allowing bitcoin-related activities, including buying, selling, and custody of crypto assets. The Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) have both issued guidance clarifying that national banks and FDIC-supervised institutions can engage in permissible crypto-related activities without prior approval, as long as they manage the associated risks appropriately.
U.S. Federal Reserve Chairman Jerome Powell said banks can serve crypto clients as long as they can manage the risk.
“The threshold has been a little higher for banks engaging in crypto activities and that’s because they’re so new,” Powell said in January. Shortly thereafter, investment bank TD Cowen said banks will limit their crypto exposure as long as anti-money laundering risks are still at play.
“We are going to allow you to buy it,” Dimon said at the bank’s annual investor day on Monday. “We’re not going to custody it. We’re going to put it in statements for clients.”
Many investors view Bitcoin as “digital gold” — a hedge against inflation and currency devaluation. Increasing involvement from institutional investors (like BlackRock, Fidelity, and Tesla) has validated Bitcoin as a legitimate asset.
While the bank will offer bitcoin access, U.S. banks remain constrained by Federal Reserve rules restricting direct involvement with crypto firms.
The decision marks a notable step for the largest U.S. bank as Dimon has had a history of criticizing digital coins. In 2021 Dimon dismissed bitcoin as “worthless” and told lawmakers during a Senate hearing in late 2023 that he’s “always been deeply opposed to crypto, bitcoin, etc.,” and that, “The only true use case for it is criminals, drug traffickers … money laundering, tax avoidance.” He said at the hearing that, “If I was the government, I’d close it down.”
At the 2024 World Economic Forum in Davos, Dimon then said, “Bitcoin does nothing. I call it the pet rock.” He added that, “This is the last time I’m talking about the with CNBC, so help me God.”
“We’ve been talking about blockchain for 12 years, not much has happened — it ain’t like AI,” Dimon said in 2024.
Dimon made it clear again that his personal view of bitcoin remains unchanged, highlighting issues like money laundering and the lack of clarity surrounding ownership, along with “the sex trafficking, the terrorism.” He added, “I don’t think you should smoke, but I defend your right to smoke. I defend your right to buy bitcoin.”
Bitcoin Price is at a current level of 106030.6, up from 103212.4 yesterday and up from 66912.62 one year ago. It still has a ways to go to reach its all-time high of $109,115, which it hit in January of this year.
JPMorgan is hosting its annual investor day on Monday, and Wall Street is paying attention to the bank’s predictions for the economy and tariff impacts. Investors are also eager to learn if Dimon is planning to step down anytime soon. He has said he plans to step down in the next few years.
At last year’s event Dimon gave investors a few hints that his retirement may be closer, saying the “timetable is less than 5 years.” This past January, he confirmed during a call with analysts that his “base case” for stepping down was a few years.
‘It’s Up to the Board.’ CEO Jamie Dimon said Monday that he still intended to depart from his post as the company’s top executive sometime over the next few years.
Many are not ready for the 69-year old to step down. “Jamie Dimon, do not go!” Wells Fargo analyst Mike Mayo, who has covered JPMorgan for decades, told Yahoo Finance recently.
He has “more public clout than he’s ever had before in his life,” Mayo added, “and that clout comes hand in hand with his position at JPMorgan.”
Top executives informally auditioned for the top job, with Marianne Lake, Doug Petno, and Troy Rohrbaugh emerging as main contenders.
Jamie Dimon has been the driving force behind JPMorgan Chase’s transformation into the largest and most influential bank in the United States. Since becoming CEO in 2005 and chairman in 2007, Dimon has overseen a remarkable expansion and modernization of the firm, navigating both financial crises and technological revolutions.
Dimon orchestrated several high-profile acquisitions, including Bank One in 2004, Bear Stearns in 2008, and Washington Mutual in 2008. He implemented stringent controls to shield the bank from the worst effects of the 2008 financial crisis. Measures such as avoiding subprime mortgage exposure and limiting high-risk investments helped JPMorgan emerge from the crisis with relative stability.
Dimon’s succession is the “single biggest idiosyncratic risk factor” for JPMorgan’s stock, according to Ebrahim Poonawala, a Bank of America analyst.
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