Dimon escalates battle over stablecoin rewards in CLARITY Act debate

JPMorgan CEO Jamie Dimon again took aim at Coinbase CEO Brian Armstrong and warned the current draft of the Digital Asset Market Clarity Act could fail if lawmakers do not address banks’ concerns. In a Fox Business interview, Dimon said he was not satisfied with the bill because it would let firms “effectively pay interest on deposits, stablecoins or something like that, without protection that they should have.” The clash reflects a wider dispute over whether stablecoin issuers should be allowed to offer yield-bearing rewards that resemble bank deposits.

Lawmakers are negotiating provisions on consumer protections, reserve requirements and whether crypto firms can offer products similar to traditional bank accounts as representatives from two Senate committees work to merge their versions of the bill. Tensions between Armstrong and Wall Street executives have grown in recent months.

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