Dimon calls Armstrong 'full of s---', vows to fight CLARITY Act. Banking lobby opposition could narrow stablecoin legislation, hitting exchange expansion.
Jamie Dimon used the Reagan National Economic Forum to draw a hard line on stablecoin regulation. The JPMorgan Chase (JPM) CEO said banks “will not accept” the CLARITY Act in its current form. He also attacked Coinbase (COIN) CEO Brian Armstrong directly, calling him “full of s---” according to reports. The comments escalate a brewing regulatory war between Wall Street and crypto-native firms.
The CLARITY Act would create a federal framework for stablecoins and allow non-bank entities like Coinbase to issue them. That directly threatens the deposit base and payment revenue of traditional banks. Dimon’s language signals that the banking lobby is prepared to fight the bill in Congress rather than negotiate on its terms. His public stance at the Reagan Forum underscores the issue as a top-tier political priority for JPMorgan.
Dimon did not single out Coinbase by accident. The exchange has been the most aggressive U.S. platform pushing for stablecoin yield and perp trading. Coinbase secured Trump administration backing for stablecoin yield earlier this year. It also became the first U.S. exchange allowed to offer global crypto perps trading. Dimon’s attack ties directly to those moves. If the CLARITY Act passes with its current provisions, Coinbase would gain a regulatory foothold that JPMorgan cannot match through its own blockchain efforts. The fight extends beyond stablecoins: perpetual swap trading is another flashpoint. Coinbase’s offshore perps platform competes with JPMorgan’s derivatives business. A hostile regulatory environment could slow Coinbase’s expansion into fee-generating products beyond spot trading.
Dimon’s stance will influence other large bank CEOs. Bank of America and Citigroup have been quieter on crypto, they share JPMorgan’s concern about disintermediation. If the CLARITY Act moves forward despite Dimon’s opposition, expect coordinated lobbying from the Bank Policy Institute and the American Bankers Association. That could delay the bill or force amendments that narrow stablecoin issuance to chartered banks only.
For crypto exchanges, the risk is twofold. First, a drawn-out fight could freeze regulatory progress, leaving Coinbase and others in a legal gray area. Second, if banks succeed in blocking non-bank stablecoin issuance, the market for yield-bearing stablecoins could shift to offshore venues. That would reduce on-chain liquidity in U.S. dollar-denominated products. The read-through extends to other exchanges such as Kraken and Gemini, which also have stablecoin ambitions but lack Coinbase’s scale and political backing.
The next concrete catalyst is the CLARITY Act’s markup schedule. If the bill passes committee with bank-friendly amendments, Dimon’s rhetoric may soften. If the bill stays close to its current form, expect JPMorgan to fund a legal challenge or launch a media campaign against Coinbase’s fitness as a stablecoin issuer. Readers should watch for public statements from other bank CEOs and from Treasury Department officials. Secretary Scott Bessent has not taken a side publicly. His position will determine whether the bill has administration support or becomes a legacy fight.
AlphaScala has previously covered the CLARITY Act fight in JPMorgan CEO Dimon Vows to Fight CLARITY Act Stablecoin Rules and Coinbase’s political capital in Armstrong Gains Trump Backing in Stablecoin Yield Fight. This latest exchange suggests the banking lobby is not backing down, and the crypto sector’s legislative path just got narrower.
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.