At JPMorgan’s annual investor day, CEO Jamie Dimon once again pulled no punches—delivering sharp criticisms of the U.S. regulatory framework while offering a reserved, if not dismissive, view on cryptocurrencies. His commentary, spanning traditional finance, regulatory overhaul, and digital assets, offers valuable insight into the evolving intersection of banking and crypto in an era of political and financial transition.

Regulatory Overreach: “They Should Be Embarrassed”

Dimon began by lambasting the regulatory response following the 2007–08 financial crisis, accusing U.S. regulators of pushing rules “so far beyond what was reasonable” that it’s become counterproductive. His contention is clear: regulation, in its current form, has not only overreached but has created systemic inefficiencies that hurt both banks and consumers.

According to Dimon, this maze of overlapping and often contradictory rules has triggered a mass migration of activity—like payments, mortgages, and private credit—out of the regulated banking system and into the unregulated shadows of finance. This regulatory arbitrage, he warned, increases systemic risk rather than reducing it.

CFO Jeremy Barnum echoed Dimon’s frustration, noting that duplicative regulations related to capital and liquidity now present risks of their own. “Complexity is becoming a form of risk,” Barnum stated, urging a comprehensive review of the last decade’s regulations to assess their continued relevance.

Dimon went further, calling many capital-related rules “completely asinine” and asserting that regulators are “stuck in some academic world” disconnected from financial realities. His belief is that financial oversight has drifted far from practical governance and into bureaucratic excess.

Hopes for Change Under New Leadership

Despite the criticism, Dimon expressed cautious optimism. He highlighted that incoming Trump-appointed heads of regulatory agencies share a desire to reform the system and “fix what’s broken.” While he acknowledged that progress will take time, he welcomed signals of a shift in supervisory strategy.

“I think you’re going to see a lot of changes in supervision,” Dimon said, referencing ongoing revisions in how agencies like the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) operate. He specifically praised the move to stop examinations based on “reputational risk,” calling it a step in the right direction.

Dimon also voiced support for a proposal allowing financial institutions to challenge supervisory findings legally and publicly—another indication of his desire for a more balanced and transparent system.

He proposed several structural changes to strengthen the banking sector: limiting interest rate exposure, capping held-to-maturity assets, and improving the usability of discount window lending from the Federal Reserve and Federal Home Loan Banks. These, he believes, could make the system “far safer” while simultaneously benefiting consumers through lower costs and greater access.

On Crypto: “I Defend Your Right to Buy It”

While Dimon saved his sharpest words for regulators, he also revisited his longstanding skepticism of cryptocurrencies, particularly bitcoin. Though acknowledging that the regulatory stance toward crypto may become more favourable under the Trump administration, his opinion remains firm: he’s “not a fan.”

“When I look at the bitcoin universe – the leverage in the system, the misuse, the anti-money laundering concerns, the sex trafficking, the terrorism – I am not a fan of it,” Dimon declared.

Nevertheless, he acknowledged that the bank will cater to client demand. JPMorgan will allow customers to buy bitcoin and display their holdings on account statements. However, the bank will not offer custody services for these assets. Drawing an analogy, Dimon said, “I don’t think you should smoke, but I defend your right to smoke.”

This hands-off but tolerant approach signals that JPMorgan sees crypto more as a customer service obligation than a strategic priority. Dimon’s view: crypto might not matter that much in the grander scheme of banking.

Blockchain: “Overhyped and Overspent”

While he showed little faith in cryptocurrencies themselves, Dimon did recognise some potential in blockchain technology—albeit with a heavy dose of scepticism.

“We’ve spent too much on it, it doesn’t matter as much as you all think,” he told analysts. In his view, blockchain has been more hype than substance over the past decade. Still, he acknowledged that in scenarios where blockchain offers genuine utility, JPMorgan will not hesitate to adopt it.

He mentioned stablecoins and central bank digital currencies (CBDCs) as likely areas for continued development and experimentation, suggesting that while these technologies might compete with traditional banking in some ways, JPMorgan remains confident in its adaptability.

“If it’s a technology we can use, we’re going to use it,” he concluded, hinting that the bank’s strategy on innovation is pragmatic rather than ideological.

Jamie Dimon’s remarks underscore the tension between traditional finance and the regulatory frameworks that govern it, as well as the uneasy truce banks are striking with the world of digital assets. As the political environment shifts and regulatory philosophies evolve, both regulators and institutions are being forced to reconsider long-held assumptions.