JPMorgan Chase CEO Jamie Dimon has once again voiced his uncertainty concerning cryptocurrencies during the latest congressional hearing.
His comments constitute the latest in a series of critiques directed at digital assets, despite JPMorgan’s significant involvement in blockchain, the underlying technology of the $1.6 trillion cryptocurrency industry.
"I've always been deeply opposed to crypto, bitcoin, etc. [Senator Warren] pointed out the only true use case for it is criminals," says JPMorgan Chase CEO Jamie Dimon. "If I were the government I'd close it down." pic.twitter.com/nkEbHR0DOS
— Yahoo Finance (@YahooFinance) December 6, 2023
Previously, Dimon had referred to Bitcoin as a “hyped-up fraud” and even likened it to a “pet rock,” though he later walked back the fraud remark. The recent remarks surfaced during a routine industry hearing, where Dimon and other CEOs of major banks faced questions from Senator Elizabeth Warren. Surprisingly, there was a rare moment of unity on a specific regulatory aspect related to cryptocurrencies.
Under Warren’s persistent questioning, Dimon and other banking CEOs concurred that cryptocurrency companies should be subject to the same anti-money-laundering regulations as traditional financial institutions. This unexpected alignment on regulatory matters marked a departure from the usual disagreements between Warren, a notable industry critic, and the banking leaders.
Warren, typically critical of the banking sector, emphasized the need to treat crypto companies with the same level of scrutiny as their traditional counterparts. She framed the issue as a matter of national security, urging Congress to take action promptly. The senator underscored the potential misuse of cryptocurrencies by terrorists, drug traffickers, and rogue nations for their illicit activities, stressing the urgency for regulatory measures to prevent such abuse.
In an unusual turn of events, the CEOs of multibillion-dollar banks found common ground with Warren on the issue of regulatory alignment between traditional banking and cryptocurrencies. Despite their customary policy disagreements, the leaders acknowledged the importance of safeguarding the financial system from potential threats posed by illicit actors exploiting the anonymity of cryptocurrencies.
As the debate on crypto regulations gains momentum, it remains to be seen how Congress will respond to these calls for action on the national security front.
Related: Cryptocurrency scrutiny
