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In harsh words, JPMorgan CEO Jamie Dimon expressed his disappointment over the current draft of the crypto market structure bill.
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He also slammed Coinbase CEO Brian Armstrong, accusing him of spending large sums of money on lobbying efforts in Washington.
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Senator Cynthia Lummis said that the banks can’t deal with a bipartisan compromise on stablecoin yield and are making completely false claims about BSA/AML.
On May 29, JPMorgan Chase CEO Jamie Dimon took a shot at the current discussion of the crypto market structure bill and slammed Coinbase CEO Brian Armstrong over their demand in the bill.
While talking to an interviewer at For Business, the JPMorgan CEO has once again raised questions over stablecoin yield. His comment comes at a time when everything started to look normal after the Senate Banking Committee approved the bill in a bipartisan vote of 15 to 9. It sounds like the banking sector is still not happy with the compromises they made on the stablecoin yield.
Stablecoin yield is the interest or return users will earn on lending or simply holding stablecoins.
JPMorgan CEO Wages War Against Crypto Sector Over Stablecoin Yield
Jamie Dimon has shared his disappointment with the current draft of the CLARITY Act, which is a clear regulatory framework for the digital asset sector. He raised an issue that this bill would allow cryptocurrency companies to provide stablecoin yield along with customer deposits. This is a long-standing debate in the banking sector, saying that these interests in stablecoins will drain deposits away from the banks.
Jamie Dimon stated that “it allows them to effectively pay interest on deposits, stablecoins, or something like that, without the protection that they should have. The banks will not accept it that way. … I’m not worried about stablecoins, but if it happened, I’m telling you I will have nothing to do with it, and it will eventually blow up.”
Dimon affirmed that there is a need for all sectors to follow the same compliance in order to compete on the same level. He stated that banks are following strict rules, including anti-money laundering (AML), the Bank Secrecy Act, consumer protection, and others.
JPMorgan CEO Criticizes Coinbase CEO in Abusive Words
In bold words, Dimon has also expressed his beef with Coinbase CEO Brian Armstrong, who is a representative from the crypto sector. Dimon claimed that Armstrong is spending hundreds of millions of dollars to create a lobby in Washington. He also asked banks not to support the bill in its current draft.
Dimon stated that he will fight back against Armstrong, saying, “It will be fought. No one’s gonna bow down to this guy, or that company. … He’s the only one, and he’s spending hundreds of millions of dollars in Washington on this thing.”
However, Dimon earlier accepted that blockchain technology and stablecoins are very useful for digital payments. Even JPMorgan has issued its own bank-issued deposit token, called JPM Coin, though it refrained from calling it a stablecoin or a cryptocurrency.
Amid this brawl between the banking sector and the crypto industry, Senator Cynthia Lummis said that banks are not able to digest the truth that they had to make compromises on stablecoin yield. She said, “The banks can’t deal with a bipartisan compromise on stablecoin yield and are making completely false claims about BSA/AML as a last-ditch attempt to poke holes in a solid piece of legislation that protects consumers. Fear of competition always brings out an interesting side of people, and that’s all this is.”
According to some reports, the floor vote for the CLARITY Act is expected to take place in the next 30 days.
