The CEO of financial services titan JPMorgan Chase says banks will fight back against the CLARITY Act, the landmark crypto bill that seeks to establish a regulatory framework for cryptocurrencies and digital assets in the US.
In a new interview, Jamie Dimon takes aim at the proposed legislation saying that it lacks adequate guardrails to protect investors. He says the bill also fails to address the Bank Secrecy Act/Anti-Money Laundering (BSA/AML) law that aims to combat illicit financial transactions.
“It allows them to effectively pay interest on deposits—stablecoins or something like that—without the protection that they should have and it doesn’t do anything for AML/BSA. It has almost no legal protection.”
Dimon says the American Bankers Association (ABA) and other financial institutions neither want the current version of the bill. Last month, ABA President Rob Nichols urged member bank chief executives to ask their respective senators to remove provisions in the CLARITY Act that will allow crypto firms to offer stablecoin rewards.
“The banks will not accept it that way. The ABA, the small banks, the credit unions—it’s not just the big guys.”
As a new markup session for the CLARITY Act is coming, the executive says that banks will push back against the bill.
“We will fight it. If we lose, we lose and we’ll leave, but it will be fought.”
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