JPMorgan Chase He will fight the Clarity Act, Chairman and CEO Jamie Damon He said Friday (May 29).
Speaking on Fox BusinessMorning with Maria“If crypto companies like it,” Dimon said Coinbase If you are going to take deposits like a bank, they must be regulated like a bank and must be required to follow Anti-Money Laundering (AML), Bank Secrecy Act (BSA) and Know Your Customer (KYC) rules.
“We have requirements to build branches in low-income neighborhoods, we have liquidity requirements, capital requirements, reporting requirements, and we have approximately 84 regulators everywhere,” Dimon said. “We’re just saying it should be fair and equal, not that they can’t do what they want to do.”
When asked if he considered cryptocurrency companies to be competitors, Dimon said no. He said the real competition comes from the many fintech companies that are taking slices of the banking business.
As for stablecoins, Dimon said he is “not too worried” about them and noted that the bank already has deposit coins from JPMorgan. When using stablecoins, there are transaction costs on both sides, because parties must buy and sell stablecoins, and there is money movement risk, Dimon said.
Dimon said he believes stablecoins will be used for cross-border payments, microdollar payments and person-to-person transfers.
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Even for person-to-person transfers, banks have requirements about who sends money and who receives it, he added.
“So, it’s complicated, and the government has to do it thoughtfully,” Dimon said. “If they don’t do it thoughtfully, it will be a big problem.”
When asked about the Clarity Act, Dimon said he was unhappy with it because it effectively allows digital asset companies to pay interest on deposits like stablecoins without the protections that should be in place and without AML/BSA requirements.
“So, no, the banks won’t accept it that way,” Dimon said. Asked about the bill’s progress, Dimon said: “We will fight it. If we lose, we will lose, and we will survive. But it will be fought.”
The Clarity Act passed a key vote on May 14, but, PYMNTS reported Monday (May 25). Digital assets The bill’s path forward is by no means certain.
