Visiting with Maria Bartiromo on Fox Business last week, JPMorgan CEO Jamie Dimon slammed the CLARITY Act and, specifically, Coinbase. Dimon also speculated that stablecoins may become a “huge problem.”
Dimon kicked things off by stating that if you take deposits like a bank, you should be regulated as a bank. He then outlined the various compliance challenges a bank must endure to operate, such as AML/KYC, BSA, and other legal scrutiny.
“We have like 84 regulators all over us… We just want it to be fair…”
Dimon shared that he believes there is a movement of money risk for stablecoins, “It is not as simple as people think.”
He said he is not happy with the way the CLARITY Act, crypto market infrastructure legislation, is turning out. The CLARITY Act is expected to move to a full Senate vote in the coming weeks.
Dimon said one reason he is not happy with the bill is that it allows digital asset firms to pay interest on funds without AML/BSA requirements. He said the banks will not allow it to be this way.
“No one is going to bow down to ‘this guy’ – alluding to Coinbase CEO Brian Armstrong. Dimon hammered Armstrong as being “full of shit.”
Armstrong apparently took the criticism in stride, posting on X an image of Dimon and himself in a hockey face-off titled “heated rivalry.” Armstrong packaged the image as Coinbase, enabling economic freedom with JP Morgan displayed as the establishment.
Coinbase Chief Policy Officer Faryar Shirzad shared the following comment on the digital dust-up:
“At the end of the day, we all share the same goal: improving the financial lives of Americans. Millions of Americans believe this includes preserving rewards programs and passing clear rules that protect consumers while keeping America at the forefront of financial innovation. It’s time for the Senate to bring the CLARITY Act to the floor.”