Jamie Dimon Said JPMorgan Will Fight Stablecoin Yield Rules in the CLARITY Act Before Congress Breaks for Its August Recess.
JPMorgan's CEO still wants to ban all stablecoin yields.
Overview
The House of Representatives passed the Digital Asset Market Clarity (CLARITY) Act last July, which establishes a clearer federal framework for digital assets. However, the CLARITY Act remains in limbo in the Senate due to one major roadblock: how to handle stablecoins that pay interest-like rewards. Traditional banks want to ban stablecoin yields to protect their deposits. In contrast, crypto exchanges like Coinbase (NASDAQ: COIN) -- which earn revenue by taking a cut of the interest generated from the assets backing those stablecoins -- want them permitted.
In early May, Senators Thom Tillis and Angela Alsobrooks finally brokered a compromise: to ban passive stablecoin rewards (earned from just holding the token) but permit activity-based rewards (tied to actual transactions or platform utility). That compromise allowed the Senate to finally draft a new version of the bill that could clear a final vote.
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Originally published at www.fool.com.