At a time when Bitcoin (BTC) has rallied, comfortably surpassing the $40,000 mark, JPMorgan (NYSE: JPM) CEO Jamie Dimon has continued his long-term opposition to the digital asset, suggesting that United States lawmakers should ban cryptocurrencies altogether.
In this regard, Grayscale Investments CEO Michael Sonnenshein, during an interview with Yahoo Finance on November 7, fired back at Dimon, asserting that Bitcoin is considered a technology investment or a risk asset while affirming that the cryptocurrency is here to stay.
He emphasized that traditional financial institutions must adapt to the changing landscape and incorporate new technologies such as cryptocurrencies.
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“I think every executive, particularly in the financial services space, is going to have their own opinions on new technologies and whether that’s crypto or bitcoin specifically. But if you take a big step back, there is no question that this asset class is here to stay, that investor interest in this asset class is only growing,” Sonnenshein said.
Dimon’s call to ban cryptocurrencies
During a Senate appearance, Dimon strongly criticized Bitcoin and other cryptocurrencies, advocating for a ban on these digital assets. The banking executive voiced apprehensions regarding the anonymity of Bitcoin and its susceptibility to criminal activities.
“I’ve always been deeply opposed to crypto, bitcoin, etc. <…> The only true use case for it is criminals, drug traffickers, money laundering, tax avoidance.<..> If I was the government, I’d close it down,” Dimon said.
Indeed, Sonnenshein acknowledged the concerns but remained steadfast in his belief that the cryptocurrency market is here to stay, stressing the importance of financial institutions considering investor needs.
Bitcoin targets to reclaim $44,000
Meanwhile, Bitcoin is currently targeting the $44,000 mark, having traded in a consolidated phase throughout the year. The Bitcoin rally has been partly inspired by speculation surrounding the approval of a spot Bitcoin exchange-traded fund (ETF) by the US Securities Exchange Commission (SEC).
Grayscale Investments is among the entities awaiting feedback from the SEC. Sonnenshein has expressed optimism that the product will gain regulatory approval, highlighting that the increased understanding of cryptocurrencies among regulators could pave the way for a Bitcoin ETF to secure approval.
By press time, Bitcoin was changing hands at $43,677 with daily losses of about 0.20%. Notably, the flagship cryptocurrency briefly touched the $44,000 mark for the first time since April 2022.