JPMorgan CEO Jamie Dimon said the bank wants stablecoin issuers that pay interest on customer balances to face the same rules as traditional lenders, adding to the ongoing debate over U.S. cryptocurrency legislation.
In an interview with CNBC on Tuesday, Dimon addressed the tensions with Coinbase CEO Brian Armstrong, who withdrew his support for the proposed Clarification Act a day before the Senate Banking Committee was scheduled to vote on it. Dimon believes there needs to be a line between rewards paid on transactions and interest paid on stored balances.
“The rewards are the same as the interest,” Dimon said. “If you’re holding a balance and paying interest, that’s the bank. You should be regulated by the bank.”
He said banks would accept a compromise in which cryptocurrency platforms offer rewards tied to transactions. But companies that operate like depository institutions are expected to meet the same standards as banks, including capital and liquidity rules, anti-money laundering controls and federal deposit insurance requirements.
Dimon framed the issue as one of fairness and safety.
“Providing a level playing field by product,” he said, arguing that companies providing similar financial services should operate under similar regulations. He warned that without such equality, risks could arise outside the regulatory system. Armstrong, on the other hand, said he believes banks should be forced to compete.
Dimon stressed, however, that JPMorgan does support competition and uses blockchain in its own operations. The bank developed a deposit token and handles payments and data transfers on a distributed ledger system. “We’re in favor of competition,” he said. “But it has to be fair and balanced.”
He also pointed to the broader compliance burdens placed on banks, from anti-money laundering checks to community lending obligations. He said the requirements were intended to protect the financial system.
“For the safety of the system, not just for the fairness of the competition,” Dimon said.
The debate over stablecoin regulation has become a central issue in Washington as lawmakers consider how to regulate digital assets without pushing activity into less transparent corners of the market. Lawmakers are reviewing a new draft circulated by the White House, although banks and the cryptocurrency industry have yet to agree on whether stablecoin issuers will be allowed to offer benefits on customer balances.
