JPMorgan Chase CEO Jamie Dimon on Friday once again lashed out at Coinbase CEO Brian Armstrong, warning that the latest version of the Clarity Act could ultimately fail if lawmakers do not address traditional banks’ concerns over stablecoin regulation.
In an interview with Maria Bartiromo on Fox Business, Dimon appeared frustrated with the direction of the debate around stablecoins and digital asset legislation. Asked if he was satisfied with the current draft of the Digital Asset Market Clarity Act, the crypto market structure bill that would formalize rules overseeing crypto by federal securities and commodities regulators, Dimon said he was not satisfied.
“No, because it allows them to effectively pay interest on deposits, stablecoins or anything like that, without any of the security that they should have,” Dimon said. “The banks won’t accept it that way. … I’m not worried about stablecoins, but if it did happen I’m telling you I would have nothing to do with it and it would eventually be destroyed.”
The comments come amid a growing divide between the banking industry and crypto firms as lawmakers prepare for a major markup process that will determine whether the Clarity Act can advance through Congress. Lawmakers are expected to continue negotiations on provisions governing stablecoin issuers, consumer protection, reserve requirements and whether crypto companies should be allowed to offer yield-bearing products similar to traditional bank accounts.
For the legislation to finally become law, it must be approved by the full Senate and House of Representatives, and signed by President Donald Trump. The Senate Banking Committee advanced its version of the bill through a markup earlier this month, and the Senate Agriculture Committee advanced its own version earlier this year. Currently, representatives from both committees are merging the bills, an important step before they can be considered by the full Senate.
At the heart of the controversy that has dragged out the Banking Committee process is the question of the stablecoin award. Armstrong and Coinbase have argued that traditional banks are pressuring lawmakers to curb stablecoin rewards programs, which function similarly to high-yield interest accounts and could jeopardize banks’ deposit-based business models. Meanwhile, banking executives argue that companies offering bank-like products should face comparable oversight and regulatory obligations.
Despite widespread bipartisan interest in creating a regulatory framework for digital assets, disagreements have become one of the primary reasons why legislation has stalled in Washington and failed to gain substantial momentum earlier this year.
Tension has been building between Armstrong and Wall Street executives for months. During World Economic Forum meetings in Davos earlier this year, Dimon told Armstrong, “You’re full of s—,” according to people familiar with the exchange who spoke to The Wall Street Journal.
Bank of America CEO Brian Moynihan reportedly rejected Armstrong’s arguments, telling him, “If you want to be a bank, just be a bank.” Wells Fargo CEO Charlie Scharf declined to attend, while Citigroup CEO Jane Fraser spent less than a minute with him, as previously reported.
Coinbase and JPMorgan did not respond to requests for comment at the time of publication.