J.P. Morgan's CEO refers to Cryptocurrency Tokens as "Pet Rocks"

Regulators should target the crypto industry instead of banks, according to Jamie Dimon, who dubbed cryptocurrency "a complete sideshow."

CEO of JPMorgan Chase, Co. Jamie Dimon characterized cryptocurrencies as "a complete distraction" and compared its tokens to "pet rocks." The comments were made in an interview with CNBC, when he also attacked the magazine's in-depth coverage of the bitcoin industry. Instead of focusing on banks, regulators should concentrate on cryptocurrency.

Regarding the market caps for Bitcoin and alternative cryptocurrencies, Dimon stated that the former's monetary value was typical of the entire sector.

Bitcoin is currently valued at less than $1 trillion, and we don't know if there is a true market for it. Dimon went to the claimed prevalence of illegal conduct inside the sector, including cybercrime, exchange tokens, and tax avoidance, to bolster his position.

‘’Why do we permit this to happen when there is 20 to 30 billion of ransomware, 20 to 30 billion of exchange coins that we know about, and plenty of AML, terrorist financing, tax avoidance, and sex trafficking?’’ He then urged regulators to concentrate their efforts on the cryptocurrency sector rather than the banks.

JPMorgan is Thinking About a Crypto Bet?

In 2017, Dimon gave the impression that he had changed his mind about cryptocurrencies by admitting that many of JPMorgan's clients were interested in investing in the field.

"They do not concur with me. That is how markets are created. Therefore, if they want access to acquire bitcoin for themselves, we can't hold it, but we can get them legal access that is as clean as possible.’’

Through the completion of its first international transaction on Polygon in November, JPMorgan announced its support for the crypto space. The transfer was a part of a pilot project run by the Monetary Authority of Singapore to investigate potential DeFi use cases in the wholesale finance markets, which also included DBS Bank and SBI Digital Asset Holdings. 

It was broadly acknowledged that the action represented traditional finance embracing the notion of employing decentralized finance as a tool to improve global monetary exchange. But looking back at Dimon's most recent CNBC remarks, it appears that the pilot program was approved with clenched teeth rather than by a strong belief in the virtues of cryptocurrency.

Analysts Optimistic on JPM 

There are no longer any sell suggestions on JPMorgan Chase shares on Wall Street.

According to Morgan Stanley, which raised the bank's rating by two notches to "buy-equivalent" status, the institution is often more resilient than competitors during recessions. After analyst Betsy L. Graseck's upgrade, none of the analysts that Bloomberg tracks have given JPMorgan a sell or an equal rating.

According to Graseck's note to clients, JPMorgan's price-to-earnings multiple didn't decline as much as peers' during prior recessions. She continued, "Cost control is also improving, operating leverage has become positive, and the bank is progressing toward fulfilling increased capital requirements."

In the event of a harsh landing, Graseck noted, "we find that JPM has traditionally de-rated less than peers in recession." She increased her price objective to $US153, implying an increase of approximately 16% from Monday's finish. JPMorgan's stock has dropped almost 17% this year, outperforming the 21% decline for the S&P's Banks Index.

Disclaimer: The information provided in this section doesn't represent any investment advice or FAMEEX's official view.