Solomon’s support contrasts with growing opposition from other top banking executives, including JPMorgan Chase CEO Jamie Dimon, who have argued that the legislation could put traditional banks at a competitive disadvantage by allowing cryptocurrency companies to offer yielding stablecoin products that resemble bank deposits without being subject to the same regulatory framework.
Speaking to Fox Business in May, Dimon said he was unhappy with the latest version of the bill because it “allows them to effectively pay interest on deposits, stablecoins or something like that, without the protection that they should have.”
“The banks won’t accept it like that,” Dimon said. “I’m not worried about stablecoins, but if it were to happen, I tell you I will have nothing to do with it and it will eventually explode.”
JPMorgan also warned that cryptocurrency legislation should close regulatory gaps rather than create new ones. In a blog post published in June, bank executives argued that companies that offer products that function like traditional bank accounts should face comparable oversight and consumer protection.
The debate over stablecoin rewards has become one of the biggest sticking points in negotiations over the CLARITY Act. Coinbase CEO Brian Armstrong has argued that banks are pressuring lawmakers to restrict stablecoin rewards because they threaten banks’ deposit-based business models, while bank executives argue that cryptocurrency companies that offer similar products to banks should be regulated like banks.
