In brief
- JP Morgan CEO Jamie Dimon went on the offensive against Coinbase CEO Brian Armstrong on Friday.
- The banking executive said he and others in the banking industry are firmly against the Clarity Act over the issue of stablecoin yield.
- Dimon claimed Armstrong is “the only one” fighting for it and spending “hundreds of millions” doing so.
JP Morgan CEO Jamie Dimon did not mince words about his stance on the Clarity Act and Coinbase CEO Brian Armstrong in an interview with Fox Business on Friday.
The banking executive said he is not happy with the current version of the Clarity Act, a bill that would regulate most crypto activity in America, and says banks will “not accept it that way.” Dimon further vowed that the banking industry will fight it, and if “we lose, we lose.”
“It will be fought,” said Dimon. “No one is going to bow down to this guy, or that company,” he added, without specifically naming Armstrong or Coinbase.
After Fox Business anchor Maria Baritromo asked specifically about Coinbase, Dimon had more to say: “He’s the only one… he’s spending hundreds of millions of dollars in Washington on this thing. He’s full of shit.”
Dimon’s scrutiny of the Clarity Act largely stems from the issue of stablecoin yield—a major sticking point with the banking lobby that has stalled progress on the bill in recent months. At the moment, cryptocurrency platforms are able to offer yield, essentially a form of interest payments, on stablecoin holdings as permitted by the GENIUS Act—signed into law by President Donald Trump in July last year.
The GENIUS Act specifically prohibits stablecoin issuers, such as Tether or Circle, from offering yield to clients, but allows for third-parties, such as Coinbase or other exchanges, to do so instead.
Banks have fought to include language in the Clarity Act to close that loophole while crypto industry giants like Coinbase have sought to ensure platforms can continue offering yield tied to stablecoins.
The debate has helped draw out the Clarity Act’s potential passage by more than four months, with Coinbase at one point withdrawing its support for the bill prior to the inclusion of stablecoin reward compromise language.
Just two months ago, Dimon slammed the demands on stablecoin yields, noting that the “public will pay.” Once more on Friday, he added that “it would eventually blow up on its own.”
“If you want to be a bank, become a bank,” he said in March. “Then you can do whatever you want under bank law.”
The contentious bill has seen plenty of back and forth over the last few months, but passed a key Senate Banking Committee vote earlier this month. It will now move to the Senate floor for a potential final approval.
Despite the back and forth, President Trump has remained adamant getting the bill passed, posting earlier this week that he aims to “codify a future proof digital asset market structure.”
As it stands, predictors on Polymarket give the bill around a 59% chance of being signed into law by the end of 2026.
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