CEOs of different recognized banks have testified before the US House of Representatives Financial Services Committee regarding how the banking industry has changed over the last 10 years. The meeting took place on April 10, and other topics such as digital currencies and blockchain technology have also been addressed.
Since Bitcoin’s creation 10 years ago, the banks run by these 7 men have been fined over $160 billion for various crimes and regulatory violations.
I’ll trust Satoshi over them any day. pic.twitter.com/xSAXlgQj6Q
— Pomp 🌪 (@APompliano) April 11, 2019
Banks Testify Before US Congress
The banking industry has experienced different changes over the last ten years. New technologies entered the market and are changing the way in which transfers are processed and how data is handled.
Representative Warren Davidson said that the banking industry is entering a new era of innovation with new technologies playing important roles. For example, blockchain technology is changing the current financial system and also cybersecurity. Moreover, he stated that the United States is lagging behind in terms of regulations compared to other nations.
JP Morgan Chase, one of the largest investment banks in the United States and the world, has recently launched a digital asset called JPM Coin that aims at helping the bank and its clients to process transactions among each other.
Jamie Dimon, the CEO of JP Morgan stated that they are supportive of virtual currencies as long as they are controlled and also regulated. However, in the past, he attacked Bitcoin calling it a fraud.
Moreover, Davidson has also addressed the Chairman and CEO of the Bank of New York Mellon, Charles Scharf, explaining that the official website of the bank claims that a lack of regulatory clarity is a barrier to provide custody for digital assets.
“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 related to any money laundering and KYC (Know Your Customer).”
The individuals present have also talked about bank financing for private pensions and their equality and diversity policies.
It is worth mentioning that representatives in the U.S. House of Representatives have reintroduced the Token Taxonomy Act (TTA) that aims at excluding virtual currencies from being considered securities. The bill aims at increasing clarity about virtual currencies in the United States.