The CEO of financial services titan JPMorgan Chase says banks will fight back against the CLARITY Act, the landmark crypto bill that aims to establish a regulatory framework for cryptocurrencies and digital assets in the United States.
In a new interviewJamie Dimon attacks the bill, saying it lacks adequate safeguards to protect investors. He says the bill also fails to address the Bank Secrecy/Anti-Money Laundering Act (BSA/AML) which aims to combat illicit financial transactions.
“This allows them to effectively pay interest on deposits (stablecoins or something like that) without the protection they should have and it does nothing for AML/BSA. It has almost no legal protection.”
Dimon says the American Bankers Association (ABA) and other financial institutions also don’t want the current version of the bill. Last month, ABA President Rob Nichols exhorted CEOs of member banks should ask their respective senators to remove provisions of the CLARITY Act that will allow crypto companies to offer stablecoin rewards.
“The banks won’t accept it that way. The ABA, the small banks, the credit unions, it’s not just the big companies.”
As another CLARITY Act review session approaches, the executive says banks will oppose the bill.
“We will fight him. If we lose, we will lose and we will leave, but we will fight him.»
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