Major Bank CEOs Testify at US Congress, Topics Include Blockchain and Crypto

Published at: April 10, 2019

Chief executive officers of leading banks testified before the United States House of Representatives Financial Services Committee on April 10 on how the banking industry has transformed since the 2008 financial crisis. Among many topics spanning the breadth of the banking industry, the CEOs and lawmakers discussed blockchain technology and cryptocurrencies.

During his allotted time for questioning, Rep. Warren Davidson (R) argued that the industry is entering into a new era of innovation, wherein blockchain technology is transforming existing financial systems, as well as cybersecurity. Davidson also noted that the U.S. is currently staggering behind due to regulatory certainty issues.

Davidson addressed Jamie Dimon, chairman and CEO of one of the largest financial institutions in the U.S. JPMorgan Chase (JPM), stressing that back in 2017, Dimon called cryptocurrencies “not a real thing,” while this year JPM unveiled “JPM Coin” and stated that “we are supportive of cryptocurrencies as long as they are properly controlled and regulated.”

In response, Dimon said that blockchain will work over time, adding:

“The part that is not real is that cryptocurrency is not supported by anything, there is no value behind it other than what the next personal pay.”

Davidson also addressed the Chairman and CEO of the Bank of New York Mellon, Charles Scharf, noting that the company’s website states lack of regulatory clarity as a barrier to providing custody for digital assets. Scharf said:

“Cryptocurrencies are very early in their existence. They are not significant today to speak of in terms of being used as a real currency to move value, and so we are actively thinking about what we want to do. One of the biggest issues that we have relates to any money laundering and KYC [Know Your Customer].”

Other topics included the banks’ role in the housing market crash, bank financing for private prisons and even their equality and diversity policies. Rep. Alexandria Ocasio-Cortez noted fines the banks paid for disproportionately low salaries for minority and female employees.

Yesterday, representatives in the U.S. House of Representatives, including Rep. Davidson, reintroduced the Token Taxonomy Act (TTA). The bill would exclude cryptocurrency from being classified as a security. The act pursues the introduction of regulatory certainty for businesses and regulators in the U.S. blockchain industry, as well as clarifying conflicting state initiatives and regulatory rulings that have confused the issue.

Tags
Blockchain
United States
Cryptocurrencies
Government
Banks
Related Posts
Bitcoin genesis block is the ‘New Testament’ of finance
“Fiat lux”, said God, having created heaven and earth, which was filled with darkness. And then, there was light. At least, that’s what the Holy Bible tells us. Translated to English, this Latin phrase means “let light be made.” For Christians, who much of the global population, these words mark the beginning of time and everything else. Eventually, there came a time when audacious, power-hungry, control-freak governments took the word “fiat” (literally meaning “it shall be” or “let it be done”) and used it to disguise one of the biggest shams ever — fiat currencies. Eons later, in 2009 A.D., …
Decentralization / Oct. 17, 2020
The United States Has to Upgrade the Legacy Financial System
When the United States government voted in stimulus payments to its citizens in the wake of COVID-19, to say it went well would be… categorically untrue. From delivering checks to the deceased to the simple fact that most people would have to go to a bank to cash a paper check during a viral pandemic, it became clear that our financial systems are not prepared for this. As countless Americans struggle to stay afloat, the effects of COVID-19 have confirmed what many have suspected for years now — this system was not built to keep up with the needs of …
Blockchain / July 10, 2020
Fed Chair Says Agency Monitoring Crypto But Not Developing Its Own
Chairman of the United States Federal Reserve Jerome Powell said that the United States Federal Reserve is monitoring digital currencies carefully, but not working on its own at the moment. Speaking at a forum in Zurich, Switzerland, on Sept. 6, Powell addressed the issue of cryptocurrencies, arguing that central banks would likely will not release their own digital currency in the near future. Powell added that cryptocurrencies raise a range of concerns including cyber security issues: "If you think about one currency that was for the United States, it would really need to be cyber secure because it's one thing …
Blockchain / Sept. 6, 2019
Steve Bannon Lauds Cryptocurrency As A Tool To Resist the ‘European Establishment’
Steve Bannon, former Chief Strategist to US President Donald Trump, said that cryptocurrencies could be an asset to the European anti-establishment movement at an event sponsored by the Swiss newspaper Die Weltwoche on March 6. At his lecture in Zurich, Bannon stated that cryptocurrencies and the Blockchain will “empower [the populist] movement, empower companies, [and] empower governments to get away from the central banks that debase your currency and makes slave wages.” With cryptocurrency “We take control of the central banks away. That will give us the power again.” Bannon sees broad use and integration of cryptocurrencies and the Blockchain …
Blockchain / March 7, 2018
Crypto Bahamas: Regulations enter critical stage as gov't shows interest
The crypto community and Wall Street converged last week in Nassau, Bahamas, to discuss the future of digital assets during SALT’s Crypto Bahamas conference. The SkyBridge Alternatives Conference (SALT) was also co-hosted this year by FTX, Sam Bankman-Fried’s cryptocurrency exchange. Anthony Scaramucci, founder of the hedge fund SkyBridge Capital, kicked off Crypto Bahamas with a press conference explaining that the goal behind the event was to merge the traditional financial world with the crypto community: “Crypto Bahamas combines the crypto native FTX audience with the SkyBridge asset management firm audience. We are bringing these two worlds together to create a …
Adoption / May 3, 2022