JPMorgan CEO Dimon opposes crypto bill on stablecoin rewards

JPMorgan Chase CEO Jamie Dimon has publicly criticized the current draft of a major cryptocurrency regulatory bill and Coinbase CEO Brian Armstrong, warning that the banking industry will not support the legislation in its present form. The comments, made during a televised interview, escalate a long-running dispute over whether stablecoin issuers should be permitted to offer yield-bearing rewards to customers.

Dimon expressed dissatisfaction with the Digital Asset Market Clarity Act, arguing that its framework allows cryptocurrency firms to effectively pay interest on deposits or stablecoins without adhering to the same protective regulations required of banks. He stated that the banks will not accept the legislation as currently written and predicted the system would eventually fail if adopted without changes. The CEO also took aim at Armstrong, accusing him of spending heavily to lobby for the bill's passage.

The clash centers on a provision within the proposed law that would govern whether companies like Coinbase can offer programs that reward customers for holding stablecoins, digital tokens pegged to assets like the U.S. dollar. Banking executives contend these products...