- The CLARITY Act missed its March 1 deadline set by the White House Crypto Council Executive Director Patrick Witt, with no new negotiation timeline announced.
- JPMorgan CEO Jamie Dimon argues that companies offering bank-like products must face identical regulations, highlighting systemic safety.
- The OCC proposed new rules banning rewards on non-self-issued stablecoins, a move affecting Coinbase and Paypal.
The deadline for the CLARITY Act passed without a deal on March 1, leaving the crypto industry and traditional banks in a continued standoff. This stalemate centers on the fundamental question of whether crypto firms offering financial services should be regulated like banks.
In a recent Iran-conflict-isnt-prolonged-there-wont-be-major-inflationary-hit.html”>interview, JPMorgan CEO Jamie Dimon insisted on a “level playing field.” He stated, “If you are going to be holding balances and paying interest, that’s the bank.”
Dimon emphasized that this ask is for the safety of the system, not just competitive fairness. He noted that banks operate under strict social and capital requirements.
However, a potential compromise was suggested where stablecoin rewards are paid only on transactions, not balances. Dimon remarked, “So we have been firm, one thing over here, yes, but if you want to be a bank, become a bank.”
Meanwhile, the Office of the Comptroller of the Currency introduced new rules under the GENIUS Act. These rules propose banning companies like Coinbase and PayPal from offering rewards for holding stablecoins they did not issue.
Consequently, this regulatory move could impact the business models of major crypto platforms. The OCC had previously granted conditional approval to several firms, including Circle and Ripple, to operate as national trust banks.
As these debates unfold, market reactions have been mixed. JPMorgan‘s stock edged 0.5% lower in overnight trading, while retail sentiment remained bullish. Conversely, Coinbase shares fell as much as 2.75% after hours.
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