JPMorgan CEO Dimon Says He Will Oppose CLARITY Act, Criticizes Coinbase's Armstrong
Summary
- Jamie Dimon, JPMorgan's CEO, publicly opposed the current draft of the CLARITY Act, a US digital-asset regulatory bill.
- He criticized the bill as offering almost no legal safeguards because it would allow crypto firms to pay interest on deposits and stablecoins while falling short on anti-money laundering (AML) and Bank Secrecy Act (BSA) provisions.
- The market sees passage of the CLARITY Act as a key factor shaping the future growth of the US digital-asset industry.
Forecast Trend Report by Period
Jamie Dimon, chief executive officer of JPMorgan Chase, has publicly opposed the current draft of the CLARITY Act, a US bill to regulate digital assets. The fight over the legislation is intensifying tensions between traditional finance and the crypto industry.
Bloomberg reported on May 29 that Dimon said the bill would allow crypto firms to pay interest on deposits or stablecoins without sufficient safeguards.
He also said the CLARITY Act does not adequately address anti-money laundering, or AML, and Bank Secrecy Act, or BSA, issues. In his view, the bill offers little in the way of legal protections.
Banks including JPMorgan will oppose the current version of the bill and fight it, he added.
Dimon also took aim at Brian Armstrong, chief executive officer of Coinbase.
He accused Armstrong of pouring large sums of political money into Washington to help win passage of the bill.
The CLARITY Act would shift oversight of digital assets from the Securities and Exchange Commission to the Commodity Futures Trading Commission, while clarifying the regulatory framework for stablecoins and decentralized finance, or DeFi.
The market sees the bill's fate as a key variable in determining the future direction of the US digital-asset industry.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
