Garlinghouse: Dimon Opposes Clarity Act to Shield JPMorgan

Ripple CEO Brad Garlinghouse accused JPMorgan CEO Jamie Dimon of opposing the Clarity Act to protect the bank’s profits and preserve the industry’s status quo. Garlinghouse charged that Dimon misrepresented the bill and is trying to shield JPMorgan from competition if exchanges can offer yields on stablecoin balances.

Garlinghouse made the remarks in a recent interview as lawmakers debate the Clarity Act in Washington. The bill would create a regulatory framework for much of the U.S. crypto industry and includes a provision that would allow exchanges to offer yields on stablecoins. Banks and trade groups oppose that provision, saying it could compete with bank deposits and affect revenue streams.

Garlinghouse argued, ‘That’s just not true. It’s either intentional misrepresentation or even negligent to try to make support for the Clarity Act go away.’ He added that Dimon aims to ‘dig a deeper moat for a business that’s extremely profitable for them.’

Dimon has criticized the bill and singled out Coinbase CEO Brian Armstrong for supporting stablecoin yields, using profanity and saying the banking industry would fight the legislation. He warned banks would resist any version of the bill they find unacceptable.

Supporters of the Clarity Act say it would bring regulatory certainty by clarifying which activities fall under securities, commodities or banking rules and by setting compliance standards. Opponents, including major banks and their trade groups, have lobbied Congress to remove or narrow the yield provision.

Coinbase and other crypto firms have pushed for the yield provision; Coinbase temporarily withdrew support for a draft that did not include it. The bill recently cleared a key Senate committee vote and is expected to move to the Senate floor for further consideration.

Lawmakers will decide whether to keep the yield provision and other measures that affect consumer protection and financial stability while weighing how the law would change the products crypto platforms can offer.