Banks Stand Up Against Crypto Bill

JPMorgan’s chief, Jamie Dimon, has taken a strong stance against a new crypto bill that many lawmakers want to pass. He says the law is full of mistakes and will be fought on the Senate floor. The bill lets crypto firms pay interest on deposits or stablecoins without giving them the same safety nets that banks have. It also ignores rules that stop money laundering and other crimes. The fight is getting louder as the Senate Banking Committee moves closer to a vote in May. Big banks that keep lots of customer money, like JPMorgan Chase, are firmly against the bill. Other banks that earn most of their money from trading are less worried about competition from crypto firms, so they might accept the bill if it changes a bit. Dimon says all banks will fight the current draft together.

He added that small banks and credit unions will also join the effort. The goal is to stop a law that could hurt banks’ profits and make it harder for people to earn interest on savings. Earlier this week, Coinbase announced a new product that would let customers earn yield on deposits. Dimon was furious about this move, calling it “audacious. ” He thinks Coinbase is making money while the law is still being negotiated. The Senate has not set a date for a vote yet, and many parts of the bill are still unsettled. Dimon admits that winning is not guaranteed, but he says the banks will keep fighting. When asked about the comments, Coinbase’s policy officer said that everyone wants to help Americans improve their finances. He urged the Senate to bring the bill, called the CLARITY Act, to a vote soon.

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