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Jamie Dimon says he’s deeply opposed to crypto and the government should ‘close it down’

Jamie Dimon

REUTERS/Brian Snyder

  • JPMorgan’s Jamie Dimon reiterated his opposition to crypto in a Congressional hearing.
  • He says the sector allows for criminal activity and should be regulated.
  • Crypto has enjoyed a big rally in recent week, with bitcoin topping $44,000 for the first time since 2022 on Wednesday. 

Cryptocurrencies may be on a hot streak, but the head of America’s biggest bank still isn’t buying the hype. 

Jamie Dimon, in a hearing before the Senate Banking Committee on Wednesday, reiterated he deep opposition to the space, calling on the government to have a heavier hand in controlling the space.  

“If I was the government, I’d close it down,” JPMorgan chief Jamie Dimon told lawmakers.

“I’ve always been deeply opposed to crypto, bitcoin, et cetera,” he remarked, responding to a question posed by Democratic Sen. Elizabeth Warren. In his view, the asset class’ true use-case is to assist in criminal activity, including drug trafficking, money laundering, and tax avoidance.

That’s because digital asset ownership is partially anonymous and its use doesn’t rely on traditional financial systems that are well regulated, Dimon said.

Dimon’s disdain for crypto is well-established; in statements this year, he compared bitcoin to a “pet rock,” and deemed it worthless

His comments have mirrored skeptical takes from US regulators, especially the Securities and Exchange commission. Under chairman Gary Gensler, the agency has moved aggressively against industry this year, following the 2022 collapse of crypto exchange FTX.

The skepticism goes beyond the US, with the European Central Bank recently noting that its current regulatory framework leaves room for crypto activity to circumvent oversight.

Despite the stance from regulators, crypto has been on a tear in the latter part of this year. Outlooks for bitcoin have turned substantially bullish, with a number of forecasters eyeing new all-time highs in the six figures in 2024 on the back of expectations for the approval of spot bitcoin ETFs and the upcoming bitcoin halving event. 

Through November, crypto trading volumes on Robinhood surged roughly 75%, and bitcoin on Wednesday reached its highest level this year, hitting $43,935. 

During the hearing, Dimon joined other bank CEOs in agreeing with Senator Warren that anti-money laundering regulation faced by traditional lenders should also be applied to crypto firms.

“When it comes to banking policy, I am not usually holding hands with the CEOs of multi-billion 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.

Read the original article on Business Insider
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