Himalaya Capital Founder Li Lu Urges Crypto Ban, Predicts Its Demise

Himalaya Capital founder and chairman Li Lu urged a ban on cryptocurrency and predicted its eventual disappearance, questioning whether digital assets can reliably settle transactions or preserve wealth.

Li made the remarks during a question-and-answer session at Columbia Business School’s 36th Annual Graham & Dodd Luncheon in New York City on Oct. 5. An audience member had asked about crypto markets and global financial conditions.

“I think we’re all better off banning it,” Li said. He also called crypto “fundamentally bogus” and said it would eventually disappear on its own. He gave no timetable and did not assess individual digital assets.

Li questioned whether crypto has the enforcement mechanism needed for dependable settlement or a store of wealth. He likened owning it to collecting art whose price depends on personal preference. He also alleged that crypto facilitates illicit transactions.

Earlier in the luncheon, Li described stocks as ownership in businesses that can create value over time. He also argued that purchasing power is a better measure of wealth than holdings of any particular currency. Those remarks preceded the separate audience question about crypto.

U.S. regulators have taken different steps on digital assets. On Jan. 10, 2024, the SEC approved the listing and trading of spot Bitcoin (BTC) exchange-traded product shares.

Rules for payment stablecoins are at a different stage. Treasury has proposed an implementing rule, and a licensing requirement is expected to take effect Jan. 18, 2027. Starting on the expected effective date, issuing a payment stablecoin in the U.S. will generally require an appropriate federal or state license.