April 19, 2024
JPMorgan CEO Jamie Dimon Calls for Crypto Shutdown in Senate Showdown
Policy & Regulation

JPMorgan CEO Jamie Dimon Calls for Crypto Shutdown in Senate Showdown

During a Senate Banking Committee hearing on December 6, JPMorgan Chase Chair and CEO Jamie Dimon expressed his strong opposition to cryptocurrencies, stating that he would attempt to shut down the entire crypto industry if he had the authority in government. The comments were made in response to questioning from Massachusetts Senator Elizabeth Warren, who raised concerns about the alleged use of crypto by North Korea to fund its missile program and support Hamas.

Dimon, a long-time critic of cryptocurrencies, associated digital assets with criminal activities such as drug trafficking and tax avoidance. In response to Senator Warren’s assertion that North Korea funded its missile program with “proceeds of crypto crime,” Dimon stated, “I’ve always been deeply opposed to crypto.” He expressed his negative view of the industry, stating, “If I were the government, I’d close it down.”

The JPMorgan Chase CEO appeared before the Senate committee alongside other major banking executives, including those from Wells Fargo, Bank of America, Citigroup, BNY Mellon, Goldman Sachs, State Street, and Morgan Stanley. Dimon has previously referred to cryptocurrencies as “decentralized Ponzi schemes” and labelled Bitcoin as a “fraud.”

During the hearing, Senator Warren questioned the other CEOs about whether crypto firms should be subject to the same Anti-Money Laundering (AML) rules as traditional U.S. banks, to which all the executives responded affirmatively.

In response to the hearing, a spokesperson for the crypto education-focused organization CEDAR Innovation Foundation criticized Senator Warren’s claims, stating they revealed “a lack of understanding of blockchain technology.” The spokesperson argued that it is misleading to assert that crypto facilitates illicit finance more than traditional fiat currency. According to CEDAR, Warren’s and the bank CEOs’ statements underscore the potential of crypto, decentralized finance, and blockchain technology as a direct threat to the traditional financial system.

Senator Warren has been a vocal opponent of cryptocurrencies in the U.S. government, often linking crypto transactions to terrorism and advocating for legislation aimed at curbing the illicit use of digital assets. Following the October 7 attack by Hamas on Israel, several U.S. lawmakers have supported Warren’s efforts to highlight the role of crypto in financing terrorism.

Image: Wikimedia Commons

Related posts

SEC Pushes Bitcoin ETF Approval Deadlines to Early 2024

Chloe Taylor

South Korea to Tighten Regulations on Crypto Token Listings

Anna Garcia

Kenya Rejects US Request to Lift Worldcoin Suspension

Kevin Wilson

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More