Jamie Dimon says banks will oppose the Clarity Act unless stablecoin rewards face bank-level safeguards, pitting JPMorgan against Coinbase. Alpha Score 49 for JPM, 44 for SOFI. The legislative outcome determines which side gains the edge.
JPMorgan Chase CEO Jamie Dimon said banks will oppose the Clarity Act unless lawmakers rewrite provisions that let crypto firms offer deposit-like rewards without bank-level safeguards. Fox Business reported the comments from a Friday interview in which Dimon argued the bill creates risks around products that function as deposits.
“No one is going to bow down to this guy,” Dimon said, using an expletive to describe Coinbase CEO Brian Armstrong. Fox Business noted Dimon made similar remarks about Armstrong earlier this year at the World Economic Forum in Davos, Switzerland.
The Clarity Act as currently drafted allows crypto companies to offer rewards tied to stablecoins or similar products. Dimon said the bill lacks the legal protections, anti-money laundering rules, and Bank Secrecy Act requirements that apply to traditional bank deposits. Banks would not accept the legislation in its current form, he told Fox Business, because it risks pulling customer money away from regulated deposits.
A stablecoin issuer can pay yield by lending tokens or deploying them in decentralized finance protocols. Banks face capital requirements, reserve mandates, and FDIC insurance costs that limit how much they can offer depositors. If a stablecoin reward looks like interest, the product becomes functionally equivalent to a bank deposit. The Clarity Act does not require those issuers to follow the same rules.
A customer holding a stablecoin that pays 5% annualized reward with instant transferability has a strong incentive to move cash out of a checking account paying near zero. Banks argue that without reserve requirements or deposit insurance on the stablecoin side, a large issuer failure could create systemic risk.
Dimon claimed Armstrong has spent hundreds of millions of dollars in Washington to push the Clarity Act through Congress. The personal attack signals how deeply the legislative fight has divided the two industries.
Crypto industry groups want clear rules for digital assets. Banks want tighter limits on stablecoin-related rewards. The bill also faces scrutiny due to President Donald Trump’s crypto interests and the approaching 2026 midterm elections, which could shift the balance of power in Congress.
Practical rule: When a CEO uses personal invective in a regulatory debate, the stakes are not rhetorical. Dimon’s language signals JPMorgan is prepared to spend political capital to kill or reshape the bill.
While Dimon criticized the Clarity Act, SoFi Technologies moved ahead with its own stablecoin. As previously reported by crypto.news, SoFi launched SoFiUSD, which the company described as the first stablecoin issued by a U.S. national bank. The launch came alongside an earnings beat that lifted short-term optimism in SOFI shares.
SoFi has longer-term plans for tokenized deposits that could offer interest and FDIC insurance. Those plans show how stablecoin products and bank deposit products are beginning to overlap in practice. For banks such as JPMorgan, that overlap sits at the center of the current fight.
Dimon said he supports blockchain technology and sees stablecoins as useful for cross-border payments. The distinction matters. He told Fox Business that stablecoin rules must include proper safeguards before Congress moves ahead.
AlphaScala’s proprietary scoring system gives JPM a Mixed rating with an Alpha Score of 49, reflecting neutral sentiment. SOFI also scores Mixed at 44, indicating cautious positioning ahead of regulatory clarity. Neither stock has a clear catalyst from the Clarity Act debate alone. The direction of the legislation could shift the relative advantage.
If the Clarity Act passes with weak stablecoin rules, banks could lose deposit market share to crypto platforms. If it passes with strong bank-style safeguards, crypto firms face higher compliance costs and slower product launches. If the bill stalls, the current regulatory vacuum benefits incumbents like JPMorgan that already operate under known rules.
The most likely near-term outcome is no bill at all. With banks and crypto firms both lobbying hard, and midterm elections approaching, Congress may delay action. That would leave the regulatory vacuum in place, which benefits incumbents like JPMorgan that already operate under known rules.
A surprise compromise that splits the difference – allowing stablecoin rewards but requiring partial reserves – would create uncertainty for both sides. Banks would face deposit erosion without a clear regulatory floor. Crypto firms would face compliance costs that reduce the reward spread.
Key insight: The data points to watch are the bill’s committee markup schedule, public statements from key senators, and any amendments that define how “deposit-like” a stablecoin reward can be before triggering bank rules. Until those details emerge, the Clarity Act remains a headline risk rather than a concrete catalyst for either JPM or SOFI.
Away from the crypto bill, Dimon also said JPMorgan could spend between $10 billion and $20 billion on an acquisition over the next two years, made during a fireside chat at the Bernstein Strategic Decisions Conference. That deal capacity gives the bank flexibility regardless of the legislative outcome.
Dimon’s interview made one thing clear: the largest U.S. bank will not let the bill pass without a fight. Whether that fight delays or kills the legislation will determine which side of the stablecoin market gains the upper hand. For traders on JPM stock page and SOFI stock page, the regulatory calendar now carries more weight than earnings momentum. For a deeper look at stablecoin friction, see Stablecoin Off-Chain Friction Threatens Real-World Use.
Prepared with AlphaScala research tooling and grounded in primary market data: live prices, fundamentals, SEC filings, hedge-fund holdings, and insider activity. Each story is checked against AlphaScala publishing rules before release. Educational coverage, not personalized advice.