- Jamie Dimon has escalated opposition to the CLARITY Act, arguing it gives crypto firms banking-like privileges without equivalent regulation.
- Banks and crypto companies remain divided over stablecoin rewards, a dispute that continues to shape negotiations around the legislation.
- Coinbase defended the bill and its rewards programmes after Dimon accused Brian Armstrong of aggressively lobbying for the proposal.
As the US Senate moves closer to considering landmark cryptocurrency legislation, JPMorgan Chase CEO Jamie Dimon has emerged as one of the bill’s most vocal critics, pledging that banks will challenge the proposal and taking direct aim at Coinbase chief executive Brian Armstrong.
Dimon said the CLARITY Act contains major flaws, particularly provisions that would permit crypto firms to offer stablecoin-based rewards that function similarly to interest payments on deposits. According to Dimon, those products could be offered without the protections and regulatory standards applied to banks.
The legislation is intended to establish a comprehensive framework for digital asset regulation in the United States. Although versions of the bill have progressed through Senate committees, lawmakers are still working through unresolved issues including stablecoin rules, consumer safeguards and reserve requirements.
Related: Trump Pushes ‘Future-Proof’ Crypto Rules as CLARITY Act Faces Senate Battle
Industry Divide Deepens Ahead of Vote
Opposition from the banking sector has centred on concerns that crypto companies could attract customer funds away from traditional institutions through yield-bearing products. Industry representatives have argued that any company providing services comparable to bank accounts should face similar oversight obligations.
Dimon said the banking industry remains united against the legislation in its current form, citing support from large banks, smaller institutions and credit unions. He also criticised Armstrong personally, claiming the Coinbase executive has spent heavily in Washington to advance the bill and insisting financial institutions would not accept the proposal as drafted.
Coinbase rejected the broader criticism of the sector. Chief Policy Officer Faryar Shirzad said consumers support rewards programmes and clear regulatory rules, adding that lawmakers should move forward with bringing the CLARITY Act before the Senate.
Related: Japan Brokerages Build Crypto Funds as 2028 Reform Nears
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