- Jamie Dimon criticizes cryptocurrencies, citing their use in illegal activities.
- Dimon urges crypto firms to follow bank anti-money laundering rules.
- Legislative progress on crypto regulation remains slow in Washington.
Forbes recently reported that JPMorgan Chase’s CEO, Jamie Dimon, spoke plainly during a US Senate hearing on December 6th, addressing the issue of cryptocurrencies being utilized for unlawful activities such as terrorism, drug trafficking, and ransomware attacks.
I’ve always been deeply opposed to crypto, bitcoin, etc. If I was the government, I’d close it down.
Jamie Dimon, CEO, JPMorgan Chase
Dimon, along with seven other bank CEOs, expressed that cryptocurrency companies should follow the same anti-money laundering regulations as traditional banks.
For a long time, Dimon has been critical of Bitcoin and other digital currencies, even though he acknowledges the worth of blockchain technology, which underpins most of these coins. Back in 2017, he predicted that governments would eventually clamp down on Bitcoin, warning that those who invested in it were likely to suffer losses. Despite his skepticism about cryptocurrencies, JPMorgan has been actively involved in blockchain through its Onyx initiative, which focuses on tokenizing various financial assets.
Despite the ongoing discussions about regulating cryptocurrencies, it appears that legislators in Washington have not made significant progress in establishing regulations for the crypto environment. In fact, the recent surge in Bitcoin’s value is driven by expectations that the Securities and Exchange Commission (SEC) will soon approve a Bitcoin exchange-traded fund (ETF) based on actual Bitcoin holdings. This development could be a major victory for companies like BlackRock and Fidelity, which are keen to delve into the crypto market with regulated offerings like ETFs.
While bank CEOs are pushing for cryptocurrencies to follow the same regulations as banks, the prospect of major crypto legislation passing in Congress soon is not very high.
This situation was further affected by the announcement from Republican Patrick McHenry, who intends to retire at the end of the next year. McHenry has been a key advocate for cryptocurrencies. His role as the head of the House Financial Services Committee allowed him to propose legislation favorable to the crypto industry, although he couldn’t always guarantee its complete success.
Analysts suggest that Patrick McHenry, who plans to retire soon, might be more motivated to pass significant crypto legislation to cement his legacy. He’s been a key figure behind two bills aimed at regulating stablecoins and crypto brokerages like Coinbase. Despite these efforts, the bills face a challenging path ahead. They lack enough support from Senate Democrats and the Biden administration to become law. With the 2024 elections approaching, the focus on major legislation might shift towards campaigning and fundraising, further diminishing the chances of these crypto bills being passed.
