JPMorgan Chase CEO Jamie Dimon said Thursday that US banks will not accept the current draft of the CLARITY Act—and that the banking industry will fight it. The legislation would let crypto firms pay interest-like rewards on stablecoin balances without the same consumer protections banks must follow. Dimon's comments set up a direct clash between Wall Street's largest bank and the country's biggest crypto exchange, Coinbase.
Why Dimon is pushing back
Dimon argued that any firm taking deposits should face the same capital, liquidity, and reporting requirements as regulated lenders. He said the American Bankers Association, smaller banks, and credit unions all oppose the current text of the CLARITY Act. “If he takes deposits like a bank, should have bank rules… If you want to be a bank, be a bank,” Dimon stated. He also demanded that stablecoin issuers meet the same anti-money laundering, Bank Secrecy Act, and Know Your Customer obligations as JPMorgan. Funds moved abroad without those controls, he warned, could vanish into anonymous wallets—potentially used by sex traffickers.
The stablecoin yield fight
Coinbase pulled support for the Senate version of the bill weeks ago, citing changes to stablecoin yield provisions. That move turned the legislation into a flashpoint between crypto firms pushing to offer deposit-like products and traditional banks that see them as unregulated competition. Dimon was blunt about his view of stablecoins themselves: “I am not that worried about stablecoin. Would have nothing to do with it. Would blow up on its own.” Despite that, JPMorgan is developing its own deposit token, JPM Coin, on the Base network—a reminder that banks are experimenting with blockchain tech, just not with the same rules they want imposed on crypto rivals.
What happens next
The CLARITY Act is heading for markup in Congress. With Dimon vowing a fight and Coinbase already on the other side, the markup is shaping up as a referendum on whether stablecoin issuers can operate outside the bank regulatory framework. No one expects a quick resolution—the dispute runs deep, and both sides have powerful lobbying machines. The next concrete step will come when lawmakers begin amending the bill, likely within weeks.
