JPMorgan Chase CEO Jamie Dimon didn't pull any punches on Friday when discussing pending crypto market structure legislation and Coinbase CEO Brian Armstrong.
In an interview with Fox Business, Dimon said he is unhappy with how the Clarity Act — legislation designed to establish a regulatory framework for digital assets — is currently written. He added that JPMorgan and other banks plan to oppose the bill in its current form.
"It allows cryptocurrency firms to effectively pay interest on deposits, stablecoins or something like that, without the protection that they should have," Dimon said, arguing that the Clarity Act also fails to adequately address Anti-Money Laundering (AML) requirements and the Bank Secrecy Act (BSA).
The Clarity Act "has almost no legal protections ... so the banks will not accept it that way," he said.
Banks and the crypto industry have been at odds for weeks over whether the legislation should permit crypto firms such as Coinbase to reward customers for holding stablecoins. Banks argue that such incentives could accelerate deposit flight from traditional financial institutions and that firms offering bank-like products should be subject to comparable regulatory oversight.
