Senator Elizabeth Warren has intensified her criticism of cryptocurrency, echoing sentiments shared by JPMorgan CEO Jamie Dimon, who recently expressed his desire to shut down crypto. Speaking on CNBC’s Squawk Box on December 7, Warren vehemently labeled crypto as a new threat to America, linking it to terrorism and rogue nation financing.
Warren, known for her anti-crypto stance, argued that crypto is being used for illicit activities, including terrorist financing and drug trafficking. Contrary to her claims, on-chain analytics from firms like Chainalysis have debunked such assertions, revealing that less than 0.2% of crypto is associated with illicit finance.
Despite the data contradicting her narrative, Warren doubled down on her position, alleging that Dimon and she are on the same page due to the serious problem posed by crypto. She insisted that cryptocurrencies are facilitating terrorism, money laundering, and support for rogue nations, conveniently overlooking the fact that the majority of illicit activities are conducted with traditional cash.
Warren’s stance aligns with Dimon’s recent remarks during a Senate hearing, where he asserted that the only true use case for crypto is by criminals, drug traffickers, and those engaging in money laundering and tax avoidance. He went as far as suggesting that, if he were the government, he would close it down. However, critics highlight the hypocrisy in Dimon’s statements given JPMorgan’s own entanglements with penalties and fines, amounting to nearly $40 billion for 272 violations over the past two decades, many of which occurred under Dimon’s leadership.
Notably, despite Dimon’s vocal criticisms of crypto, JPMorgan has ventured into the cryptocurrency space by launching its own JPM Coin on the Ethereum blockchain. This apparent double standard between traditional banks and the crypto industry underscores the complexity of the ongoing debate.
While politicians like Warren express a desire to ban crypto, critics argue that such an approach is impractical, likening it to attempting to ban the Internet. The emerging clash between traditional financial institutions, political figures, and the cryptocurrency ecosystem raises questions about the future regulatory landscape and the coexistence of these divergent financial systems in the United States.