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Coinbase CEO Reacts to Cryptocurrency Ban Suggested by JPMorgan CEO Jamie Dimon
It’s a country mile between JPMorgan Chase (JPM) CEO Jamie Dimon and Coinbase (CURRENCY) co-founder Brian Armstrong’s opinions on digital resources.
Maybe it shouldn’t be so shocking given their jobs.
Dimon famously told lawmakers earlier this month he would have put an end to cryptocurrencies if he had the power to do so.
“I have always been deeply opposed to cryptocurrencies, bitcoin, etc.,” Dimon said in response to a question from Sen. Elizabeth Warren (D-Mass.) during a Senate hearing.
Dimon was referring to the alleged use of cryptocurrencies by terrorists, drug traffickers and rogue nations.
Dimon added, “If I were the government, I would shut it down.”
Suffice it to say, Armstrong, the latest big name in the cryptocurrency world, sees things differently and was surprised by Dimon’s comment.
“No, I don’t think it’s serious,” Armstrong said on Yahoo Finance Live when asked if he thinks the government will take Dimon’s proposed ban seriously. Armstrong released his 2024 outlook for the cryptocurrency industry in a blog post on Coinbase today.
Armstrong pointed to millions of Americans using cryptocurrencies to diversify their investments as one reason why lawmakers are unlikely to shut down cryptocurrencies. He also believes that the approval of spot Bitcoin ETFs is close, which would represent another validation of cryptocurrencies as an alternative investment.
Brian Armstrong, CEO of Coinbase, speaks during the Piper Sandler Global Exchange and FinTech Conference in New York, June 7, 2023. (Brendan McDermid/REUTERS) (REUTERS / Reuters)
“It’s actually strange because, although Jamie Dimon’s comments were a little perplexing, internally at JPMorgan, they are actually pursuing several projects working on blockchain and crypto technology,” Armstrong added. “So they’re such a big organization, I think sometimes the left hand doesn’t know what the right hand is doing.”
JPMorgan declined to comment. The banking giant owns JPM Coin, a stablecoin pegged to the US dollar, used to transfer funds cross-border between customers. It also developed Onyx, a blockchain-based payments platform.
What both top executives could probably agree on is that cryptocurrencies have caught fire again, after bad actors like FTX and Binance were purged from the system.
The price of bitcoin has increased more than 150% since the beginning of January.
Furthermore, the total market capitalization of all cryptocurrencies as measured by CoinGecko has nearly doubled over the past year, reaching over 1.6 trillion dollars. According to Yahoo Finance, Coinbase’s stock price has more than quadrupled in the same period data.
Brian Sozzi is the executive editor of Yahoo Finance. Follow Sozzi on Twitter/X @BrianSozzi and so on LinkedIn. Tips on deals, mergers, activist situations, or anything else? Email brian.sozzi@yahoofinance.com.
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