- Garlinghouse accused Dimon of mischaracterising the CLARITY Act’s compliance provisions and regulatory intent.
- A provision allowing stablecoin yield products has become a major flashpoint between banks and crypto firms.
- Ripple argues opposition from large banks reflects commercial interests as lawmakers move closer to establishing a crypto regulatory framework.
Ripple CEO Brad Garlinghouse has publicly challenged JPMorgan’s Jamie Dimon over criticism of the CLARITY Act, saying the banking executive should be more transparent about the reasons behind his opposition to the legislation.
The comments followed Dimon’s recent criticism of the bill, which seeks to establish clearer rules for the US digital asset industry. Dimon has argued that the proposal does not adequately address compliance concerns and could create risks relating to money laundering and other regulatory obligations.
Garlinghouse disagreed with that assessment, stating that the legislation does not reduce compliance requirements and that portraying it in that way is inaccurate. He argued that efforts to weaken support for the bill are based on a flawed interpretation of its provisions.
Related: JPMorgan: Bitcoin, Gold ‘Debasement Trade’ Losing Steam as ETF Outflows Rise
Crypto Firms And Banks Clash Over Bill’s Impact
A major point of contention is a section of the legislation that would allow crypto platforms to offer yields on stablecoin holdings. The provision has attracted opposition from banking groups, while some digital asset companies have argued it is an essential part of the bill.
Garlinghouse said JPMorgan’s objections should be viewed in the context of the bank’s financial interests. He highlighted the scale of JPMorgan’s payments business, which he said produces around US$20 billion (AU$28.4 billion) in revenue and more than US$5 billion (AU$7.1 billion) in profit, arguing that the bank is motivated to preserve an existing advantage.
Garlinghouse also said the digital asset industry broadly supports clearer regulation and legal certainty. The CLARITY Act has already advanced through a Senate committee and remains under consideration as lawmakers debate the future framework for crypto regulation in the United States.
Related: Paradigm, Hyperliquid Urge Treasury to Ease Stablecoin AML Rules for DeFi
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