JPMorgan Chase CEO Jamie Dimon said banks want stablecoin issuers that pay interest on customer balances to face the same rules as traditional lenders, sharpening an ongoing debate over US crypto legislation.
In an interview with CNBC on Tuesday, Dimon addressed reported tensions with Coinbase CEO Brian Armstrong, who pulled support for the proposed CLARITY Act just a day before the Senate Banking Committee was scheduled to vote on it. Dimon argued that there must be a line between rewards paid on transactions and interest paid on stored balances.
“Rewards are the same as interest,” Dimon said. “If you have to have balances and pay interest, it’s the bank. You should be regulated by a bank.”
Banks would accept a compromise where crypto platforms offer rewards tied to transactions, he said. But firms that act as depository institutions should meet the same standards as banks, including capital and liquidity rules, anti-money laundering controls and federal deposit insurance requirements.
Dimon framed the issue as one of justice and security.
“Level playing field for product,” he said, arguing that companies offering similar financial services should operate under similar oversight. Without this parity, he warned, risks could build outside the regulated system. Armstrong, on the other hand, has said he believes banks should be forced to compete instead.
However, Dimon emphasized that JPMorgan supports competition and uses blockchain in its own operations. The bank has developed a deposit token and processes payments and data transfers on distributed financial systems. “We’re in favor of competition,” he said. “But it has to be fair and balanced.”
He also pointed to the wider compliance burden that banks bear, from anti-money laundering controls to community loan obligations. These requirements, he said, are designed to protect the financial system.
“For the safety of the system, not just for fair competition,” Dimon said.
The debate over stablecoin oversight has become a central issue in Washington as lawmakers weigh how to regulate digital assets without pushing activity into less transparent corners of the market. Lawmakers are reviewing new draft language circulated by the White House, although the banking and crypto industries have yet to agree on whether stablecoin issuers should be allowed to offer returns on customer balances.
