Jamie Dimon Reacts To Coinbase CEO's Level Playing Field Pitch: 'If They Want To Be A Bank, So Be It' - But They Should Be Treated As One

Jamie Dimon, CEO of JPMorgan Chase & Co. (NYSE:JPM), weighed in on the debate surrounding stablecoin rewards on Monday, insisting that any cryptocurrency firm offering should fall under banking regulations.

‘If They Want To Be A Bank, So Be It’

During an interview with CNBC, Dimon responded to a question about his reported disagreements with Coinbase Global Inc. (NASDAQ:COIN) CEO Brian Armstrong over the rewards clause in the cryptocurrency market structure bill.

Dimon said rewards are basically just interest, but a workable “compromise” could be paying rewards on transactions and not balances.

“If you are going to be holding balances and paying interest, that's the bank. You should be regulated by a bank,” he added. “If they want to be a bank, so be it.”

Dimon Wants ‘Level Playing Field’

Dimon also highlighted the numerous restrictions and requirements that banks must adhere to, including insurance against deposits, anti-money laundering, and other social, liquidity, capital, transparency, reporting, board and government requirements.

The CEO reiterated the bank’s support for blockchain technology, highlighting the launch of the deposit token, JPM Coin and momentum in stablecoins and asset tokenization.

“So, we're in favor of competition, but it's got to be fair and balanced, level playing field,” Dimon argued.

Coinbase didn’t immediately return Benzinga’s request for comment.

Dimon Vs. Armstrong

Dimon reportedly clashed with Armstrong at the World Economic Forum earlier in January, confronting him for “lying on television.”

Armstrong accused banks of stifling competition and ironically, much like Dimon demands today, a "level playing field" in the financial landscape.

Coinbase withdrew its support for the cryptocurrency market structure bill, hours before lawmakers were set to vote on the legislation. The primary objection centers around a rule that would prohibit cryptocurrency platforms from paying rewards on idle stablecoin balances, which does not apply to traditional banks offering interest on dollar deposits.

Price Action:  Shares of JPMorgan fell 0.21% in after-hours trading after closing 0.91% lower at $297.56 during Monday's regular trading session, according to data from Benzinga Pro. 

The stock maintains a weaker price trend over the short, medium, and long terms with an average Momentum score, according to Benzinga’s Edge Stock Rankings.

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