“I advise people to stay away from Bitcoin”

The rally that Bitcoin (BTC) and other cryptocurrencies started at the end of last year made the market attract the attention of institutional investors. Even mainstream names who were previously suspicious of the asset class have begun to enter the market in some way.

One of these names, Jamie Dimon, CEO of US bank JPMorgan Chase, testified at the virtual hearing of the US House of Representatives Financial Services Committee on May 27. Warren Davidson, a Republican Ohio MP, who is known for his crypto-friendliness, mentioned that Dimon had previously referred to Bitcoin as a “fraud,” but there were rumors that his company was considering offering Bitcoin funds for private asset clients.

“Why have your views changed in the intervening time, and why do you think parliament should provide legal clarity for this asset class?” Dimon asked the lawmaker. He replied, “Not much has changed in my views. I’m excluding blockchain and stablecoins backed by an asset. Bitcoin is not backed by any assets and I don’t think such a thing has much value.”

JPMorgan’s CEO continued as follows:

“My personal advice is for people to stay away. Still, that doesn’t mean customers aren’t in demand (…) I can’t tell people how to spend their money. We’re debating whether to offer a safe way for people to buy and sell.”

Stating that Bitcoin cannot be compared to fiat money and gold, Dimon said that regulators still need to create a legal framework for cryptocurrencies.

JPMorgan has filed with the US Securities and Exchange Commission for a new debt instrument that offers investors direct exposure to many crypto-focused companies, Cointelegraph reported March 10. The tool, called the Cryptocurrency Exposure Basket, consists of 11 US-listed companies that directly or indirectly do business with cryptocurrencies.

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