Amid ongoing discussions around cryptocurrency regulation in the United States, Jamie Dimon has said that stablecoin issuers paying interest on customer balances should be regulated in the same way as traditional banks.
Dimon made the remarks during an interview with a business television network on Tuesday while addressing debates around the proposed CLARITY Act. The issue has gained attention after reported tensions between Brian Armstrong and Dimon, particularly after Armstrong withdrew support for the bill just 1 day before the US Senate Banking Committee was scheduled to vote on it.
Dimon said there must be a clear distinction between transaction-based rewards and interest paid on stored balances. “Rewards are the same as interest,” Dimon said. “If you are going to be holding balances and paying interest, that’s the bank. You should be regulated by a bank.”
According to Dimon, banks could accept a compromise where crypto platforms offer rewards linked to transactions. However, companies that operate like deposit-taking institutions should follow the same rules as banks.
These requirements would include capital and liquidity standards, anti-money laundering compliance and federal deposit insurance protections.
Dimon described the issue as both a fairness and safety concern for the financial system. “Level playing field by product,” he said, explaining that businesses offering similar financial services should be subject to the same regulatory oversight.
He also warned that if similar services operate under different regulatory frameworks, financial risks could develop outside the regulated banking system.
In contrast, Armstrong has argued that banks should compete directly with crypto firms rather than rely on regulation to restrict them.
Dimon noted that JPMorgan Chase supports competition and is actively exploring blockchain technology. The bank has developed a deposit token and uses distributed ledger systems to process payments and transfer data.
“We’re in favor of competition,” Dimon said. “But it’s got to be fair and balanced.”
He also highlighted the compliance responsibilities banks already carry, including anti-money laundering checks and community lending obligations. These rules, he said, exist to protect the stability of the financial system. “For the safety of the system, not just the fairness of competition,” Dimon said.
The debate around stablecoin regulation has become a key issue in Washington as lawmakers attempt to create a regulatory framework for digital assets without pushing activity into less transparent areas of the market.
Lawmakers are currently reviewing updated draft language circulated by the White House. However, the banking and crypto industries have not yet reached agreement on whether stablecoin issuers should be allowed to provide yield on customer balances.
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