Elizabeth Warren and Jamie Dimon agree on banning crypto

Jamie Dimon, CEO of JPMorgan Chase, and US Senator Elizabeth Warren did saved on financial regulation for more than a decade. But in a rare occurrence during a Senate banking committee hearing yesterday (December 6), they took the same stance. Both want to see the US government get much stricter with crypto.

“The only real use case for it is criminals, drug smugglers, money laundering, [and] tax avoidance,” Dimon said. “If I were the government, I would shut it down.”

This was in response to a question from Warren about why crypto is “an attractive financial tool for terrorists, drug smugglers and rogue nations.”

Their alignment in sentiment isn’t entirely new – both have been critical of crypto in the past. But come just weeks after the conviction of FTX founder Sam Bankman-Fried and crypto exchange Binance’s $4.3 billion settlement with US regulators on anti-money laundering charges and sanctions violations, their shared skepticism may be taking on new resonance.

Quotable: Warren and Wall Street agree on crypto

“When it comes to banking policy, I usually disagree with the CEOs of multibillion dollar banks. But enforcing anti-money laundering rules against crypto to protect national security is common sense and critical. It is time for Congress to act.”

—Senator Elizabeth Warren’s December 6 post on X

A non-exhaustive timeline of Jamie Dimon’s disdain for crypto

January 2014: On the sidelines of the World Economic Forum in Davos, Dimon says bitcoin is a “terrible store of value” and suggests JPMorgan stay away from it

November 2015: Dimon predicts a crackdown on cryptocurrencies at the Fortune Global Forum. “No government would ever support a virtual currency that goes around borders and doesn’t have the same controls. It’s not going to happen,” he said.

September 2017: Dimon threatening to fire traders who bought bitcoinwarn that it is a “fraud” which will eventually explode

October 2017: Dimon says he won’t talk about bitcoin more, but do soon after: “If you’re stupid enough to buy it, you’ll pay the price one day.”

January 2018: pronounced Dimon “regret” to call Bitcoin a fraud, but it won’t last.

October 2018: On the eve of the 10th anniversary of bitcoinDimon says, “I didn’t want to be the spokesperson against bitcoin. I don’t really give a shit — that’s the point, OK?”

October 2021: Dimon calls crypto “worthless” during the big crypto boom. He says bitcoin has “no intrinsic value,” adding that “regulators are going to regulate the hell out of it.”

February 2022: Instead of using the term currency, Dimon coins the term “crypto-tokens.” In an interview with the Greek news paper Ekathimerini, he says, “currencies have legal rules behind them, central banks and tax authorities.”

September 2022: Dimon warns that cryptocurrencies “Ponzi schemes“

December 2023: Dimon says he would “shut down” crypto if he were the government

One big number: JPMorgan’s breaches

$3.93 billion: Fines JPMorgan has paid for 272 banking, securities and other violations since 2000, the bulk of which accrued after Dimon’s tenure began in 2005, according to Good Jobs First’s breach tracker. That’s why crypto lawyer John Deaton called Dimon a hypocrite following the bank’s chief executive’s comments on 6 December.