JPMorgan CEO Jamie Dimon calls for crypto ban: ‘I’d close it down’
JPMorgan Chase CEO Jamie Dimon has renewed his attacks on cryptocurrencies. During a recent hearing before the Senate Banking Committee, Dimon reiterated his deep opposition to the industry, calling on the government to have a heavier hand in controlling it.
“I’ve always been deeply opposed to crypto, bitcoin, etc.,” Dimon said under questioning from Sen. Elizabeth Warren. “The only true use case for it is criminals, drug traffickers … money laundering, tax avoidance.”
Dimon elaborated on his reasoning, citing cryptocurrency’s “somewhat anonymous” nature and ability to “move money instantaneously” due to its decentralized structure.
“If I was the government, I’d close it down,” the CEO said.
Dimon made the comment during an annual hearing where CEOs of major banks discuss Wall Street oversight. Present in the hearing include Goldman Sachs CEO and chairman David M. Solomon, Citigroup CEO Jane Fraser, Wells Fargo & Co. CEO and president Charles W. Scharf, Bank of America CEO and chairman Brian Thomas Moynihan and Morgan Stanley CEO and chairman James P. Gorman.
Dimon’s statement contrasts sharply with JPMorgan’s active participation in the blockchain space. The bank launched its own corporate stablecoin, JPM Coin, in 2017 and established its blockchain platform, Onyx, in 2020.
A recent Bloomberg report revealed that the daily transaction of JPM Coin exceeds $1 billion. Additionally, JPMorgan projects the token’s value to hit $10 billion within the following year.
“If I was the government, I’d close it down.”
Jamie Dimon, CEO at JPMorgan Chase
National security concerns
Senator Warren supported Dimon’s stance. He pointed out that cryptocurrencies have also been linked to terrorist groups that reportedly used their multimillion-dollar gains on the Bitcoin blockchain to fund their operations.
The hearing also addressed the application of anti-money laundering (AML) regulations to crypto companies. All banking representatives, including Dimon, agreed that crypto companies should adhere to the same AML rules as traditional financial institutions.
“When it comes to banking policy, I am not usually holding hands with the CEOs of multibillion-dollar banks, but this is a matter of national security. Terrorists, drug traffickers and rogue nations should be barred from using crypto for their dangerous activities,” Warren said.
Despite a cautious stance from regulators, the cryptocurrency market has experienced a significant surge in recent months. The bullish trend is particularly evident in Bitcoin, with many forecasters predicting new all-time highs in the six figures for 2024.
Angel Marinov is the Managing Editor at Coinlabz. With extensive knowledge of crypto payments and blockchain use cases, Angel is a trusted source of accurate and timely information