Citadel founder Ken Griffin calls crypto a 'Jihadist call' against dollar

Citadel founder and CEO, Ken Griffin, revealed why he’s skeptical of cryptocurrencies in an interview with Bloomberg's Erik Schatzker at the Economic Club of Chicago.

The American hedge fund manager discussed a number of issues in the interview including the U.S. recovery from Covid-19, his views on Donald Trump's presidency, and why Citadel is not currently involved with crypto.

“I wish all this passion and energy that went to crypto was directed towards making the United States stronger...It’s a jihadist call that we don’t believe in the dollar. What a crazy concept this is, that we as a country embrace so many bright, young, talented people to come up with a replacement for our reserve currency.”

While Griffin was firm in his conviction that cryptocurrency still carries too much regulatory uncertainty, he didn’t rule out future involvement once regulators lay out clear rules. Griffin also agreed with SEC Chairman Gary Gensler who has pushed for stricter regulation of cryptocurrencies, noting:

“Doing so will make it a smaller market – because it’ll become a far more competitive market when there’s regulatory clarity,” Griffin said. “And that will be good. A small market, less people involved who are frankly just trying to make a quick buck.”

Griffin maintained that once regulators lay out clear rules, Citadel would begin to trade cryptocurrencies, however until then they would have no involvement.

“Because of the lack of regulatory certainty around cryptocurrency, we just aren’t involved today,” Griffin said. “I just don’t want to take on the regulatory risk in this regulatory void that some of my contemporaries are ready to take on.”

Institutional involvement in crypto has boomed in recent months, and while Citadel maintains it is not prepared to take on what they perceive to be a risk outweighing its benefits, other funds and wall street banks have increasingly accepted the demand for crypto and launched cryptocurrency offerings for their clients.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.