Scott Melker discusses JPMorgan Chase (JPM) CEO Jamie Dimon's latest comments on Congress' CLARITY Act legislation.
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Jamie Dimon, the CEO of JP Morgan went on TV and absolutely lost his cool again about the crypto industry, specifically about Coinbase and Brian Armstrong and definitely about the Clarity Act.
We're just going to go ahead and show you the entire video and then we'll unpack it. Here we go.
So you know, this it's complicated and the government needs to do it thoughtfully. If they don't do it thoughtfully, it will because it'll be huge problem.
So are you happy with the way the clarity act is turning out?
No, because it it it it allows them to effectively pay interest on deposits, stable coins or something like that, without the protection that they should have. And it doesn't do anything for ML BSA. It has almost no legal protections.
So no, it's the banks will not accept it that way.
And and the ABA, the small banks, the credit unions, it's not just the big guys. I'm not worried about stable coin, but if it happened, I'm telling you, I would have nothing to do with it and it would eventually blow up in his own.
Okay, but that's my personal thing, but I do understand the concern of all the other banks. So,
Well, the markup is coming. I mean what are you going to do about it?
It is. We'll fight it. If we lose, we lose, and we'll live.
But it will be fought. This will not be no no one's going to bow down to this guy, okay, or that company.
But he's the only one and he's spending hundreds of millions of dollars in Washington on this thing.
He said he's he's representing the whole industry.
Wow. Um, we're gonna watch that one.
Wow. Well, I mean, this is turning into a big fight between the whole, you know, each industry and and and you're talking about blockchain and and and getting blockchain out?
But we do blockchain.
You've been doing that for a long time.
Yeah, we have connections. We have JP well we're gonna do it. I think it's a legitimate technology. I think stable coin could be legitimate payment system.
Her reaction was absolutely priceless. Now, let's remember that Jamie Dimon has called this a Ponzi scheme. He said it's a fraud. anyone at JP Morgan who touches Bitcoin will be fired. I mean, he's had every expletive in the world for it. He just generally doesn't drop them on national TV.
He's saying all the quiet parts out loud, as I alluded to before, right?
And what's very, very interesting here is that we have this situation now where the banks are trying to kill the Clarity Act because they don't like the compromise, uh, that was proposed on stablecoin yield.
But if they kill the Clarity Act, what people don't realize is that the Genius Act, which has already passed into law, is actually worse for the banks. It's a really interesting nuance that I don't think people are really understanding. The Genius Act bans issuers like Tether and Circle from allowing yield, but they don't then extend that to the second parties like Coinbase and the other exchanges. Right now, Coinbase has the best possible scenario.
They can offer yield or rewards or whatever you want to call it, to their customers just for holding USDC on the platform. So Jamie Dimon here is advocating basically to kill the Clarity Act or at least to fix the Clarity Act so it doesn't offer these yields, but what they're doing is actually going to kill it dead on arrival, and they're going to be in a worse situation.
So basically you have Jamie Dimon losing his cool on TV because he's crying like a baby over a problem that he can't fix. He's basically backed into a corner. Now, this isn't the first time, right? This is a this is a series. He he called Brian Armstrong full of shit in Davos last year, then Brian Armstrong famously killed the Clarity Act, uh, earlier this year by saying that he was not happy with the stable coin compromise.
And then we ended up with the stable coin compromise. This is developing, right? We all know that if this doesn't happen by July 4th, the clarity Act is dead and that would actually be probably a massive win for the crypto industry on the stable coin side, but a massive loss for the crypto industry on all the other things that we need to see from the clarity Act.