The debate over the CLARITY Act in the United States has heated up as JPMorgan Chase CEO Jamie Dimon launched an open criticism of Coinbase CEO Brian Armstrong.
The dispute reflects the escalating conflict between traditional financial institutions and the cryptocurrency industry as the Senate prepares to debate the bill.
Dimon stressed that the banking sector will not accept the CLARITY Act in its current form because it allegedly gives too much advantage to crypto companies.
He also claimed that Armstrong spent hundreds of millions of dollars lobbying politicians in Washington to ensure the bill's support.
According to Dimon, the main concern for banks is that crypto companies have the potential to offer products that provide returns to customers like bank savings accounts, but without having to comply with the strict regulations imposed on financial institutions.
He believes that this situation could create unbalanced competition and increase risks for consumers because crypto companies are not subject to deposit protection and several important regulations such as anti-money laundering laws.
Dimon also stressed that opposition to the CLARITY Act does not come only from JPMorgan, but is supported by banking associations, small banks and credit unions across the United States.
However, he acknowledged that the bill could still be passed if it receives sufficient support in the Senate.
At the same time, Coinbase defended its position, stating that consumers need clearer regulations for the digital asset industry.
Coinbase's Chief Policy Officer, Faryar Shirzad, said the CLARITY Act would provide protection for consumers while ensuring that the United States remains a leader in global financial innovation.
Coinbase also believes that products that offer returns to customers are part of the evolution of the modern financial system.
The dispute comes as the crypto industry's influence in Washington is growing.
In recent years, crypto companies have spent significant funds on lobbying and political campaigns to gain support for a more industry-friendly regulatory framework.
This situation has caused the banking sector to see its position increasingly challenged by new players in the financial world.
