JPMorgan Chase Chairman and CEO Jamie Dimon made it clear that the traditional banking sector will not back down without a massive legislative battle over the impending crypto framework.
Speaking with Fox Business anchor Maria Bartiromo on Friday, Dimon stated that the banking industry is prepared to aggressively oppose the Clarity Act.
“If you want to be a bank, be a bank”
Dimon insisted that banks are not running scared, but rather demanding an even playing field.
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“Let me rephrase it: we’re not worried. We think [it is] fair if he takes deposits like a bank, [he] should have bank rules [and] social requirements…If you want to be a bank, be a bank.”
Dimon went on to outline the massive regulatory burden that traditional institutions shoulder compared to decentralized platforms.
“[They are] not FDIC insured. We have liquidity requirements, capital requirements, [and] reporting requirements. We have 84 regulators all over us, just saying [it] should be fair [and] equal, period. Not that they can’t do what they want to do if you want to buy cryptocurrency, be my guest. It’s a free country, I defend that, but we want to be fair.”
Illicit finance and sketchy wallets
Dimon also reiterated his long-standing concerns regarding the exploitation of digital assets by criminal networks. He warned that that moving money on an unvetted basis presents an immediate national security threat.
“So if they want to be moving money around… on any basis, you should have to question: can that be used illegitimately? The answer is yes, unless [they are] following the same rules.”
“It will be fought”
When Bartiromo asked point-blank if he was happy with the way the Clarity Act is turning out ahead of upcoming congressional markups, Dimon gave a definitive “no,” explaining that it leaves both large and small financial institutions fundamentally unprotected.
“No, it [allows] them to effectively pay interest on deposits [via] stable[coins] or something like that without the protection there that [they] should have. It doesn’t do anything for [us] no legal protections. No, banks will not accept that, not the ABA [American Bankers Association], small banks, or credit unions, not just the [big] guys.”
With a final Senate showdown looming, the banking titan promised that JPMorgan and its peers across the financial industry are gearing up for an all-out lobbying war to block or fundamentally reshape the bill.
“We will find out. If we lose, we lose, but it will be fought. Don’t bow down to this guy or company [we are] the only one paying hundreds of millions in this thing.”