Dimon Opposes CLARITY Act Over Stablecoin Regulation

JPMorgan CEO Jamie Dimon publicly opposed the CLARITY Act, a stablecoin bill advancing through Congress, arguing the legislation gives crypto companies a regulatory advantage over traditional banks. Dimon said crypto firms offering yield-bearing stablecoin products should follow the same rules as banks, including Anti-Money Laundering (AML) compliance, the Bank Secrecy Act, and direct regulatory oversight. The bill currently enjoys White House support and backing from pro-crypto lawmakers, with a Senate vote expected in the coming weeks. Banking groups are pushing for stricter amendments as the debate over who can offer bank-like products – and under what rules – becomes a central flashpoint in U.S. crypto policy.

The CLARITY Act’s Stablecoin Flashpoint

Dimon’s core objection centers on stablecoins and whether crypto firms should be permitted to offer rewards or yield on customer balances. The current version of the CLARITY Act, he said, lacks clear banking and compliance requirements and would allow crypto companies to provide products that resemble bank accounts without being regulated as banks. Dimon criticized Coinbase CEO Brian Armstrong for supporting the bill. Coinbase has defended the legislation, arguing that stablecoin rewards benefit users and support crypto growth in the U.S. The tension escalated after Coinbase launched a USDC product offering yields to its users, directly overlapping with interest-bearing deposit accounts offered by JPMorgan and other traditional lenders.

Dimon’s Bank vs. Crypto Banking Argument

Dimon framed the issue as a question of regulatory parity. "Companies offering services similar to bank accounts should follow the same rules as banks," he said, according to the report. Banking groups echoed that view, warning that the current version of the CLARITY Act may enable crypto firms to market yield-bearing products without submitting to Federal Reserve or OCC oversight. The Banking groups are now pressing lawmakers for amendments that would impose bank-level capital and liquidity requirements on stablecoin issuers before final passage.

Deposit Drain Risk and Lending Impact

Traditional banks are also concerned that widely adopted yield-bearing stablecoins could reduce deposits in the banking system, constraining lending activity. If customers shift funds from checking and savings accounts into stablecoin products offering higher yields, banks would face higher funding costs and reduced capacity for credit creation. Dimon’s comments reflect a broader institutional fear that the CLARITY Act, as drafted, could accelerate deposit outflows to crypto platforms without requiring those platforms to hold reserve capital or follow the same leverage and risk-management rules. The Coinbase USDC yield product is a concrete example of this competitive threat.

Next Catalyst: Senate Vote on Amendments

The CLARITY Act continues to move through Congress with support from the White House and pro-crypto lawmakers. Banking groups are pushing for stricter rules, and lawmakers are discussing amendments ahead of the final vote. A Senate vote is expected in the coming weeks. The outcome will determine whether stablecoin issuers face bank-level regulation or a lighter regime that Dimon and traditional lenders argue creates an uneven playing field. If the bill passes without tight compliance requirements, expect further pushback from major banks and potential legal challenges. If stricter amendments are added, the crypto industry may pull its support, delaying the regulatory clarity it has sought for years. Traders should watch for language on yield-bearing stablecoins, AML enforcement, and the definition of banking product in the final text.

For broader context on how stablecoin policy fits into the U.S. crypto regulatory landscape, see Paxos Subsidiary Gets First SEC Clearing and Settlement License and crypto market analysis.