JPMorgan CEO Jamie Dimon criticized the CLARITY Act over stablecoin yields.
JPMorgan CEO Jamie Dimon criticized the U.S. cryptocurrency market structure bill (CLARITY Act) in an interview with Fox Business, amid a debate over rewards for stablecoins.
The top executive stated that the document effectively allows issuers to pay interest on deposits without comparable customer protection.
According to him, banks “will not accept it in this form.”
“I’m not worried about ‘stablecoins,’ but if it happens, I will have nothing to do with it, and eventually, it will all blow up,” Dimon said.
The clash between banks and crypto companies has intensified as the CLARITY Act progresses in Congress. Lawmakers are debating requirements for issuers, reserves, consumer protection, and the right to offer yield products similar to bank accounts.
The main point of contention is the reward programs for “stablecoins.”
Coinbase and its CEO Brian Armstrong believe banks are pushing for restrictions to protect the deposit model. The banking sector insists that companies offering bank-like services should be subject to similar oversight.
Disagreements have slowed work on the document, despite bipartisan support for digital asset regulation.
For the law to take effect, it must be approved by both houses of Congress and signed by President Donald Trump.
In May, the Senate Banking Committee advanced its version of the initiative. The Agriculture Committee did so earlier. Lawmakers are now reconciling texts before a full Senate vote.
Earlier, TD Cowen analysts downgraded their forecast for the adoption of the CLARITY Act, considering its approval unlikely this year.
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