REGULATION | America’s Biggest Bank Says Major U.S Banks Will Fight the CLARITY Act

JPMorgan Chase CEO, Jamie Dimon, has intensified his public battle with the CEO of Coinbase, Brian Armstrong, warning that major U.S banks will oppose the current version of the CLARITY Act and accusing the Coinbase chief of spending heavily to sway lawmakers in Washington.

Speaking in a Fox Business interview, Dimon said banks “will not accept” the legislation in its current form, arguing that it would allow crypto companies to offer interest-like rewards on stablecoin holdings without being subject to the same safeguards and regulatory requirements imposed on traditional lenders.

The remarks mark the latest escalation in a months-long confrontation between Wall Street’s largest banks and the crypto industry over the future of U.S digital-asset regulation. At the center of the dispute is whether crypto platforms such as Coinbase should be allowed to offer yield or rewards on stablecoins, a feature banks argue effectively replicates deposit products without equivalent oversight.

Dimon was particularly critical of Armstrong’s lobbying efforts, claiming the Coinbase chief is spending “hundreds of millions of dollars” to secure passage of the legislation. He also dismissed Armstrong’s influence in unusually blunt terms, saying no one in the banking industry would “bow down” to him.

The CLARITY Act has become one of the most consequential pieces of crypto legislation moving through Congress aiming to establish a comprehensive regulatory framework for digital assets in the United States. However, negotiations have repeatedly stalled over provisions governing stablecoin rewards, anti-money laundering obligations, and the extent to which crypto firms should be treated like banks.

The fight has evolved into a broader power struggle between traditional finance and the digital-asset sector. Armstrong has accused banks of attempting to weaken crypto legislation through lobbying while banking executives argue that allowing crypto firms to compete for consumer deposits without equivalent regulation would create systemic risks.

Despite his criticism of the industry, Dimon reiterated that he sees value in blockchain technology and certain stablecoin applications particularly in cross-border payments. His concerns, he said, are focused on how the legislation currently handles consumer protections and banking regulations.

The clash underscores how crypto regulation has become one of Washington’s most fiercely contested financial policy battles with both Wall Street banks and digital-asset firms pouring resources into shaping the rules that could determine how trillions of dollars move through the financial system over the next decade.

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