- Dimon accused Armstrong of heavy lobbying as banks fight the CLARITY Act’s current form.
- Banks oppose stablecoin rewards, claiming they could drain deposits used for loans.
- The Senate Banking Committee advanced the bill in a 15-9 vote and now awaits a full Senate vote.
JPMorgan Chase CEO Jamie Dimon has sharply criticized Coinbase CEO Brian Armstrong over a major crypto bill moving through the Senate, escalating a fight between banks and digital asset platforms.
Speaking Friday at the Reagan National Economic Forum, Dimon said banks “will not accept” the bill in its current form. He also accused Armstrong of using heavy lobbying pressure to shape the legislation.
The clash centers on the CLARITY Act, a landmark digital asset bill that would create a broader legal framework for crypto markets in the United States. The bill aims to define which assets fall under securities rules and which fall under commodities oversight.
Dimon Targets Armstrong as Senate Fight Grows
Dimon singled out Armstrong by name during the interview, describing him as a central figure behind the industry’s lobbying campaign.
“No one’s gonna bow down to this guy, or that company,” Dimon said. “He’s the only one and he’s spending hundreds of millions of dollars in Washington on this thing.”
Dimon then added, “He’s full of shit.”
The JPMorgan chief argued that the bill gives crypto firms an unfair advantage by allowing them to offer products that resemble interest-bearing deposits. He said such products would operate without the same protections and rules applied to banks.
“It allows them to effectively pay interest on deposits, stablecoins or something like that,” Dimon said. He added that the bill does not properly address anti-money laundering and Bank Secrecy Act requirements.
Stablecoin Rewards Become the Banking Flashpoint
The dispute has focused heavily on whether platforms should be allowed to pay rewards linked to stablecoins. Banks have pushed back against that provision, arguing it could pull money away from traditional deposits.
According to the data cited in the debate, banks claimed stablecoin rewards could reduce deposits available for consumer loans by as much as 20%.
A compromise from Senators Thom Tillis and Angela Alsobrooks would block passive yield but allow rewards tied to actual activity. That includes transactions, network participation, and real usage.
Banks still rejected the compromise and pledged to increase opposition.
CLARITY Act Advances Despite Banking Opposition
The CLARITY Act passed the House in July 2025 by 294 to 134, showing strong bipartisan support. It later moved to the Senate, where the stablecoin rewards issue slowed progress.
On May 14, the Senate Banking Committee advanced the bill 15-9. All 13 Republicans supported it, joined by two Democrats.
The bill now awaits a possible full Senate vote, where it would need 60 votes to advance. No floor timeline has been announced.
Dimon said banks would continue fighting the bill but acknowledged the outcome remains uncertain.
Related: ‘No Rules Doesn’t Mean No Harm’: Lummis Pushes Crypto Clarity Act Amid DeFi Concerns
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