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Omid Malekan, Author and Adjunct Professor at Columbia Business School | omidmalekan.com

Columbia Business professor calls J.P. Morgan’s Bitcoin stance a '$2T exception'

Columbia Business School professor Omid Malekan has raised questions regarding J.P. Morgan's involvement with Bitcoin, highlighting a potential conflict with regulatory standards and the past criticism of the cryptocurrency by the bank's CEO, Jamie Dimon. Malekan made these remarks on his X account on January 13.

"J.P. Morgan has for years facilitated client buying and selling of Bitcoin, first through private funds with NYDIG and now via ETFs," said Malekan, Adjunct Professor. "Dimon has consistently maintained that it's a fraud or Ponzi or a tool primarily used for crime. But Bitcoin is a $2T exception at the world's biggest bank?"

In his post, Malekan noted that J.P. Morgan has facilitated Bitcoin transactions through private funds and exchange-traded funds (ETFs), despite Dimon's previous statements labeling Bitcoin as a "fraud" and a "Ponzi." He questioned why regulators have not investigated this apparent exception, given that banks are generally required to avoid activities linked to crime. Malekan also pointed out the contrast between Bitcoin’s $2 trillion presence at J.P. Morgan and the bank's public stance on the cryptocurrency.


Omid Malekan's X post | x.com

According to CoinDesk, J.P. Morgan has introduced in-house Bitcoin funds for its private banking clients, partnering with NYDIG to offer passive Bitcoin investment options. The bank has also begun facilitating access to Bitcoin through ETFs, expanding its cryptocurrency investment offerings and providing digital asset services to high-net-worth clients.

Operation Chokepoint 2.0 refers to actions by federal banking regulators aimed at isolating the cryptocurrency industry by pressuring banks to sever ties with crypto-related businesses. Documents obtained through Freedom of Information Act (FOIA) requests by Coinbase and Chief Legal Officer Paul Grewal reveal the Federal Deposit Insurance Corporation's (FDIC) role in discouraging banks from engaging with the crypto sector. These records, including unredacted letters and supporting documents, show coordinated efforts justified by claims of consumer protection and financial stability, according to MarketScreener.

According to his website, Malekan is an adjunct professor at Columbia Business School, where he has been teaching about cryptocurrency since 2019. He is the author of two books: "The Story of the Blockchain," a beginner’s guide to blockchain technology, and "Re-Architecting Trust," which explores the evolution of trust in modern systems. Malekan also consults for companies and delivers talks on the intersection of traditional systems and emerging technologies.

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