JPMorgan Chase CEO Jamie Dimon confronted Coinbase CEO Brian Armstrong at the World Economic Forum in Davos last week, accusing him of misrepresenting banks’ role in opposing parts of a major US crypto market structure bill.
Key Takeaways:
- JPMorgan CEO Jamie Dimon confronted Coinbase’s Brian Armstrong at Davos over claims banks are undermining a US crypto bill.
- The clash centers on stablecoin rewards, with banks opposing yield while crypto firms argue bans favor traditional finance.
- The market structure bill has stalled in the Senate amid growing political and industry resistance.
According to a report from The Wall Street Journal, the exchange took place during a coffee meeting between Armstrong and former UK Prime Minister Tony Blair.
Dimon reportedly interrupted the discussion and told Armstrong he was “full of s—,” objecting to public comments in which the Coinbase CEO suggested banks were working behind the scenes to undermine the legislation.
Stablecoin Rewards Spark Clash Between Banks and Crypto Firms
The dispute centers on provisions related to stablecoins, particularly whether issuers should be allowed to offer yield or rewards.
Banking industry representatives have opposed such measures, arguing they could blur the line between banks and non-bank financial firms.
Crypto executives, including Armstrong, have countered that banning stablecoin rewards would tilt the playing field in favor of traditional banks and restrict competition.
The Journal reported that Armstrong’s stance has left him increasingly isolated among banking leaders.
Brian Moynihan, chief executive of Bank of America, allegedly told Armstrong that if Coinbase wants to operate like a bank, it should become one.
Charlie Scharf, CEO of Wells Fargo, reportedly declined to engage in discussions with the Coinbase chief altogether.
The clash comes as the US market structure bill faces mounting political and industry resistance.
The legislation passed the House of Representatives in July but has stalled in the Senate, where Democratic lawmakers have raised concerns over ethics rules and the bill’s broader impact on the financial system.
Lobbyists from both the banking and crypto sectors have also warned that certain provisions could reshape competitive dynamics in unintended ways.
Coinbase Plays Down Bank Rift as Crypto Bill Stalls in Senate
Coinbase has sought to downplay the rift.
Chief policy officer Faryar Shirzad told the Journal that the disagreement over stablecoin rewards is an outlier in what he described as an otherwise cooperative relationship with banks, pointing to existing partnerships between the exchange and traditional financial institutions.
A Coinbase spokesperson later said the company had nothing further to add beyond those comments.
Meanwhile, progress on the bill remains uneven. The Senate Banking Committee indefinitely postponed a planned markup after Armstrong said Coinbase could not support the legislation in its current form.
In contrast, the Senate Agriculture Committee advanced its own version along party lines, setting the stage for negotiations to merge the two proposals before any full Senate vote.
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