Crypto bill stuck in a stalemate! JPMorgan opposes stablecoin interest; U.S. lawmakers: If we don’t act in time, we’ll lose to China.

U.S. lawmakers warn that failure to quickly pass the CLARITY crypto bill could lead to losing leadership to China. However, JPMorgan Chase CEO strongly opposes it, criticizing stablecoins earning interest without bank-level regulation. Under traditional financial resistance, whether the bill can pass smoothly remains uncertain.

U.S. Lawmakers Urge Swift Passage of the CLARITY Crypto Bill

Senator Cynthia Lummis warns that if the Digital Asset Market Clarity Act (CLARITY) is not passed, the U.S. Congress will cede its leadership in the crypto space to China and other countries.

She states: "If the U.S. does not set global standards for digital asset regulation, other countries will do so, and China won't wait for us. The CLARITY bill is crucial in defining America's leadership and is our way to ensure that our competitors cannot dictate the rules of the next financial era."

Image source: X/Cynthia Lummis U.S. Senator Calls for Swift Passage of the CLARITY Crypto Bill

Lummis says that the U.S. dollar-based financial system has stabilized the global situation. The CLARITY bill can ensure that the U.S. continues to lead the next digital financial system and must be pushed forward before China takes the lead.

Previously, reports indicated that the Senate Banking Committee advanced the bill in May, rekindling hopes for successful legislation in 2026.

• Related report: CLARITY Bill Passes Senate Banking Committee! Stablecoin Yields Retain "Active Rewards" Space

JPMorgan CEO Opposes Strongly, Worries About Lack of Regulation for Stablecoins

However, major banks still have concerns about stablecoin regulation, making the bill's passage uncertain.

According to The Block, JPMorgan CEO Jamie Dimon is strongly dissatisfied with the current bill. In an interview, Dimon pointed out that the bill allows crypto companies to pay interest on deposits or stablecoins without providing protections, which is unacceptable to the banking industry and a primary reason for ongoing opposition.

Dimon explained that the bill does not impose the same anti-money laundering, banking secrecy, and capital reserve requirements on crypto companies as on banks. The banking sector believes that rewards for stablecoins could accelerate the loss of traditional deposits, and companies offering similar products should be subject to the same regulation.

Despite opposing current regulations, Dimon supports blockchain technology and recognizes the practicality of stablecoins in cross-border payments. He emphasizes that the government must carefully consider how to handle tokens pegged to fiat currency, or it could cause big trouble.

Dimon Accuses Coinbase CEO of Spreading Nonsense

As the 2026 midterm elections approach, the industry begins to scrutinize former President Donald Trump’s crypto interests, and opinions on stablecoin rewards are divided. Dimon directly targets Coinbase and its CEO, Brian Armstrong.

Dimon criticizes Armstrong for spending hundreds of millions of dollars lobbying, saying no one will yield to this company, and accuses him of spreading nonsense, consistent with his remarks at the World Economic Forum earlier this year.

Coinbase Chief Policy Officer Faryar Shirzad responded, stating that both sides aim to improve financial lives. He believes that maintaining reward programs and protecting consumers through regulation can keep the U.S. at the forefront of innovation, and calls on the Senate to submit the bill for review as soon as possible.

With strong opposition from the banking industry and the upcoming 2026 midterm elections, whether the CLARITY bill can pass in 2026 remains uncertain. Lummis warns that if it does not pass by 2026, the next legislative window may not open until 2030.

• Extended reading: 2026 CLARITY Bill Latest Summary: Registration Exemptions, Passive Income on Stablecoins, and More Key Points