JPMorgan CEO Jamie Dimon criticized the U.S. CLARITY Act, which addresses the structure of the cryptocurrency market, during an interview with Fox Business, amid a debate over stablecoin yields.
The executive stated that the bill effectively allows issuers to pay interest on deposits without adequate customer protections.
According to him, banks "will not accept this in its current form."
"I’m not worried about ‘stablecoins,’ but if this happens, I will have nothing to do with it, and in the end, everything will blow up," Dimon said.
The conflict between banks and crypto companies has intensified as the CLARITY Act progresses through Congress. Lawmakers are debating issuer requirements, reserves, consumer protections, and the right to offer yield-bearing products similar to bank accounts.
The main point of contention is the reward programs associated with stablecoins.
Coinbase and its CEO Brian Armstrong believe that banks are pushing for restrictions to protect their deposit model. The banking sector insists that companies offering bank-like services should be subject to similar oversight.
These disagreements have slowed progress on the bill, despite bipartisan support for regulating digital assets.
For the law to take effect, it must be approved by both chambers of Congress and signed by President Donald Trump.
In May, the Senate Banking Committee advanced its version of the initiative, following earlier action by the Agriculture Committee. Lawmakers are now reconciling the texts before bringing them to a full Senate vote.
Notably, analysts at TD Cowen have downgraded their outlook for the passage of the CLARITY Act, deeming its approval this year unlikely.