Banks like JPMorgan Chase & Co., Goldman Sachs Group Inc. and Morgan Stanley are taking a cautious approach as they wrestle with how best to offer their clients access to cryptocurrencies. While several now clear crypto futures, most have largely steered clear of other services, according to a Bloomberg analysis of the offerings from some of the world’s biggest banks. The Basel Committee on Banking Supervision said June 10 that lenders will face the toughest capital requirements for holdings in Bitcoin and other crypto assets.
Cryptos are acting very crypt-like (as in dying) with most of the cryptos down 15% today.
Why? A good guess would be China’s crackdown on non-PBOC crytos. And then we have Senator Elizabeth Warren advocating for the US government to seize control of the crypto market and have The Fed offer a cypto alongside it normal money printing functions.
The banks have been quicker to embrace the underlying technology that underpins such digital assets. JPMorgan has been a longtime proponent of Ethereum, the world’s most-used blockchain that uses smart contracts to accomplish blockchain-based tasks that are impossible with Bitcoin.
In one example, JPMorgan is using its private version of Ethereum to conduct overnight repurchase agreements where digitized U.S. Treasury bonds are swapped for JPM Coin, the bank’s version of a digital dollar. It says it’s doing more than $1 billion of such trades a day.
Not surprised that Lizzie Warren wants to regulate cryptocurrencies.