JPMorgan’s Dimon Tells Coinbase CEO “You Are Full of S—” at Davos

TLDR

• Coinbase CEO Brian Armstrong faced hostile reception from top bank CEOs at Davos World Economic Forum over the Senate crypto market structure bill
• JPMorgan’s Jamie Dimon confronted Armstrong during coffee with Tony Blair, calling him “full of s—” over claims banks are interfering with crypto legislation
• Bank of America CEO Brian Moynihan and Wells Fargo CEO Charlie Scharf dismissed or refused meetings with Armstrong about the bill
• The dispute centers on stablecoin rewards, which offer yields up to 3.5% and could threaten traditional bank deposit models
• Coinbase withdrew support for the CLARITY Act after banks lobbied against provisions allowing stablecoin yield rewards

Coinbase CEO Brian Armstrong encountered fierce resistance from Wall Street banking leaders during the World Economic Forum in Davos last week. The confrontations occurred as Armstrong lobbied against elements of a Senate crypto market structure bill.

The harsh words referred to television interviews where Armstrong accused banks of interfering with US crypto legislation. Banks have opposed allowing stablecoin rewards under the proposed law.

Bank of America CEO Brian Moynihan met with Armstrong for 30 minutes but rejected his position. Moynihan told the Coinbase CEO “if you want to be a bank, just be a bank.”

Citigroup CEO Jane Fraser gave Armstrong less than one minute of her time. The cold reception marked a sharp turn in relations between crypto and traditional banking executives.

Armstrong announced on social media that Coinbase could not support the Senate bill “as written.” He warned that traditional banks were lobbying to protect their market position by targeting stablecoin rewards.

Stablecoin rewards function like interest-bearing accounts but offer higher yields. Some products offer up to 3.5% returns to users who hold tokens like USDC.

Stablecoin Yields Threaten Bank Deposits

Banks argue stablecoin rewards pose a threat to deposit-based banking models. Traditional banks rely on customer deposits to fund lending and other core services.

If customers move money to stablecoins in large numbers, the impact on local lending could be substantial. Smaller banks may face particular pressure from this shift.

Armstrong argues banks should compete rather than lobby for restrictions. The Coinbase CEO claims banks are trying to “ban their competition” through legislative influence.

The legislation known as the CLARITY Act will determine who can offer stablecoin products. The bill will also establish what rules govern these digital asset services.

The Senate Banking Committee postponed a markup session for the bill on January 15. The delay came after Armstrong withdrew Coinbase support for the legislation.

Committee Split on Crypto Rules

The Senate Agriculture Committee voted to advance its version of the bill on Thursday. The vote split along party lines.

Lawmakers said the Agriculture Committee bill must combine with the Banking Committee version. The combined legislation would then face a full Senate vote.

Coinbase chief policy officer Faryar Shirzad called the fight over rewards “an anomaly” in relations with banks. Shirzad said Coinbase works closely with banks and has announced multiple partnerships.

The divide between crypto platforms and traditional banks continues despite business relationships. Coinbase maintains partnerships with JPMorgan and Citigroup even as executives clash over legislation.

The Senate Banking Committee has not rescheduled its markup session. Democratic lawmakers have raised concerns about ethics provisions in the bill.

Banking and crypto lobbyists have opposed different elements of the proposed legislation. The disputes center on potential impacts to their respective industries.

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