The CEO of financial services giant JPMorgan Chase said banks will fight the CLARITY Act, a landmark cryptocurrency bill that seeks to establish a regulatory framework for cryptocurrencies and digital assets in the United States.
new interviewJamie Dimon takes aim at the proposed law, saying it lacks adequate guardrails to protect investors. He also said the bill fails to address the Bank Secrecy Act/Anti-Money Laundering Act (BSA/AML), which is meant to combat illicit financial transactions.
“It allows them to effectively pay interest on deposits (stablecoins or similar) without the protections they deserve, and does nothing about AML/BSA. There is very little legal protection.”
Dimon said the American Bankers Association and other financial institutions do not want the current version of the bill. Last month, ABA President Rob Nichols urge Member bank CEOs should ask their respective senators to remove provisions of the CLARITY Act that allow cryptocurrency companies to offer stablecoin compensation.
“Banks aren’t going to take it that way. It’s not just the big companies — ABA, small banks, credit unions, etc.”
As a new mark-up session on the CLARITY Act approaches, the administration says banks will oppose the bill.
“We will fight. If we lose, we will leave, but we will fight.”
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