JPMorgan CEO Jamie Dimon criticised crypto companies seeking to offer rewards on stablecoin holdings, saying firms should become banks if they want to provide such financial services.
The comments come amid an ongoing dispute between the banking sector and crypto firms that has stalled progress on a major US crypto market structure bill.
“If you want to be a bank, become a bank,”
Dimon said during an interview with CNBC.
Dimon warned that allowing crypto firms to offer yield on stablecoins without the same regulatory requirements as banks could create risks for the broader financial system.
He pointed to the extensive rules banks must follow when offering interest-bearing products, including deposit insurance participation, anti-money laundering compliance, reporting requirements and governance standards.
The disagreement has become a central obstacle to passing the proposed legislation after crypto companies such as Coinbase pushed to ensure stablecoin rewards remain permitted under the framework.
Negotiations led by the White House between banking and crypto industry representatives have so far failed to produce a compromise, leaving the bill’s future uncertain.