- In an interview with CNBC, JPMorgan CEO Jamie Dimon said firms offering bank-like services should face the same regulatory standards as banks.
- He said the ask for a “level playing field” is not just about fairness and balance, but also about the overall safety of the system.
- Dimon said that one possible compromise could be that stablecoin rewards are only paid on transactions, and not balances.
The CLARITY Act missed its March 1 deadline as the standoff between banks and the crypto industry continues. According to JPMorgan CEO Jamie Dimon banks just want a “level playing field” where if companies are offering bank-like products, they should be held accountable to the same regulations.
In an interview with CNBC, Dimon said that one possible compromise could be that stablecoin rewards are only paid on transactions, and not balances. “If you are going to be holding balances and paying interest, that’s the bank. You should be regulated by a bank,” Dimon stated. “So we have been firm, one thing over here, yes, but if you want to be a bank, become a bank.”
He added that more than just the fairness and balance, the ask is also to maintain the overall safety of the system. “We have social requirements. We have liquidity requirements, capital requirements, transparency requirements, reporting requirements, board requirements, government requirements,” said Dimon. “If they want to be a bank, so be it.”
For the safety of the system, not just the fairness of competition.
– Jamie Dimon, CEO, JPMorgan
JPM’s stock edged 0.5% lower in overnight trade with retail sentiment on Stocktwits around the bank trending in ‘bullish’ territory over the past day.
What Does CLARITY Act Delay Mean For Crypto?
The bank recently forecast that the CLARITY Act is likely to pass by mid-2026 and could serve as a catalyst for the crypt market during the second half of the year. However, some analysts believe that while the CLARITY Act getting pushed forward will give crypto markets a bump, it may not be long-term.
After the GENIUS Act passed in June last year, the CLARITY Act is seen as the next step in the push for mainstream crypto adoption. White House Crypto Council Executive Director Patrick Witt has set a March 1 deadline for both sides to come to an agreement, but a deal has not been finalized yet.
OCC Throws Curveball With GENIUS Act Rules
Amid the stalemate, the Office of the Comptroller of the Currency (OCC), released new rules proposing a ban on companies like Coinbase (COIN) and PayPal (PYPL) offering rewards to customers for holding stablecoins that have not been issued by them – in this case, Circle Internet’s (CRCL) USDC and Paxos’ PayPal USD (PYUSD).
This comes after the agency gave Circle (CRCL), Ripple (XRP), Fidelity (FNF), Paxos, and crypto custodian BitGo conditional approval in December to operate as national trust banks. Last week, Crypto.com was also given conditional approval.
The rules will take effect either 18 months after the GENIUS Act was passed or 120 days after regulators finalize the proposed rules, whichever happens first.
COIN’s stock rallied 5.3% on Monday as Bitcoin (BTC) climbed towards $70,000. However, in overnight trade, the shares were down as much as 2.75. Retail sentiment around the crypto exchange on Stocktwits remained in ‘neutral’ territory over the past day.
PYPL’s stock, on the other hand, dipped 1.2% after-hours following a drop of 1.26% during the regular session. Retail sentiment was more upbeat compared to Coinbase, trending in ‘bullish’ territory over the past day.
Read also: Bitcoin Rebounds Toward $70K After US-Iran Clash – ‘Sign Of Life,’ Says VanEck CEO
For updates and corrections, email newsroom[at]stocktwits[dot]com.