“If I was the government, I’d close it down”

JPMorgan Chase CEO Jamie Dimon delivered scathing remarks about the crypto industry during testimony at a Senate Banking Hearing Wednesday.

Dimon “deeply opposed” to crypto

“I’ve always been deeply opposed to crypto, Bitcoin, etc.,” Dimon said while fielding questions from Senator Elizabeth Warren. “The only true use case for it is criminals, drug traffickers, money laundering, and tax avoidance.”

Dimon went on to allege that crypto being “somewhat anonymous” and its overall ability to allow users to “move money instantaneously” served as part of his reasoning, noting the decentralized nature of cryptocurrency.

“If I were the government, I’d close it down,” Dimon concluded.

Wall Street oversight

Dimon’s testimony was part of a larger annual hearing held by The Senate Banking Committee that brings together the CEOs of the nation’s largest banks to discuss oversight of Wall Street.

In attendance alongside Dimon included CEO and Chairman of Goldman Sachs, David M. Solomon, CEO of Citigroup, Ms. Jane Fraser, CEO and President of Wells Fargo & Co., Mr. Charles W. Scharf, Chairman and CEO of Bank of America, Mr. Brian Thomas Moynihan, and Chairman and CEO of Morgan Stanley, Mr. James P. Gorman.

Dimon’s comments come shortly after a Bloomberg report alleging JPMorgan’s digital token, JPM Coin, handles over $1 billion in transactions daily. Moreover, the company estimates that its token’s value could reach $10 billion within the next year. 

Warren and Dimon united

Senator Warren and Dimon had a rare moment of agreeance during today’s hearing when both concluded that the crypto industry should be held to the same anti-money laundering standards.

“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,” said Senator Warren. “Terrorists, drug traffickers, and rogue nations should be barred from using crypto for their dangerous activities. It’s time for Congress to act.”

Wednesday’s hearing comes amidst broader discussions in the Senate and House about how to regulate the cryptocurrency industry following news terrorist organization Hamas received over $41 million in crypto wallets between August 2021 and June 2023. 

“We know that bad actors prey on vulnerabilities wherever they can find them,” House Financial Services Committee Chairman Patrick McHenry said in a hearing on illicit digital assets. “There’s a bipartisan agreement, though, that we must hold these bad actors to account in every way possible and, specifically, when it comes to digital assets and the digital asset ecosystem.”