Solomon’s endorsement contrasts with growing opposition from other top banking executives, including JPMorgan Chase CEO Jamie Dimon, who has argued that the legislation could disadvantage traditional banks by allowing crypto companies to offer yield-generating 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 that way,” Dimon said. “I’m not worried about stablecoins, but if this happens, I tell you I will have nothing to do with it and it will eventually explode.”
JPMorgan also warned that crypto legislation should close regulatory gaps rather than create new ones. In a blog post published in June, bank executives argued that companies offering products that function like traditional bank accounts should face comparable oversight and consumer protections.
The debate over stable rewards has become one of the main sticking points in the CLARITY Act negotiations. Coinbase CEO Brian Armstrong has argued that banks are pressuring lawmakers to restrict stablecoin rewards because they threaten banks’ deposit-based business models, while banking industry executives argue that crypto companies offering bank-like products should be regulated like banks.
