Ripple CEO Brad Garlinghouse appeared on the "Mornings with Maria" show on Fox News on June 11 and discussed the Digital Asset Market Clarity Act in detail. The legislation aims to establish
Ripple CEO Brad Garlinghouse appeared on the "Mornings with Maria" show on Fox News on June 11 and discussed the Digital Asset Market Clarity Act in detail.
The legislation aims to establish a comprehensive regulatory framework for cryptocurrencies. It aims to resolve jurisdictional disputes between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) regarding digital assets.
But the bill has been getting stalled because of the controversy around rewards on stablecoin holdings.
Related: Explained: What is a stablecoin?
A stablecoin is a type of cryptocurrency that is designed to maintain a fixed value by being pegged to a real-world asset, most commonly the U.S. dollar.
The banking industry has been opposed to the bill because it believes the bank customers would close their savings accounts to hold stablecoins for higher returns.
But the crypto industry believes the banks are acting in a non-competitive manner.
JPMorgan Chase CEO Jamie DimonGetty Images
JPMorgan Chase (NYSE: JPM) CEO Jamie Dimon has been at the forefront of the banking industry's opposition to the CLARITY Act. He said in an interview,
"That [CLARITY Act] doesn't do anything for AML or BSA. No legal protections. The banks will not accept it that way."
In a recent interview on Fox News, Garlinghouse talked at length about Dimon's opposition to the CLARITY Act and said he has been dismissing the crypto industry for a decade now.
JPMorgan generates $20 billion in revenue and over $5 billion in profit from their payments business, so Dimon is trying to protect a "deeper moat" around an "extremely profitable" business for his bank, the Ripple CEO said.
Garlinghouse sharply criticized the billionaire CEO for his "disservice" and "intentional misrepresentation" of the CLARITY Act by claiming that the bill reduces compliance requirements for the digital asset industry.
Around 90% of crypto trading happens offshore, and the passage of the bill could lead to capital rotating into the U.S., he said.
The crypto industry wants clarity, and for Dimon to suggest otherwise is incorrect, Garlinghouse added.
Related: 'Biggest regulatory bill since Dodd-Frank' added to Senate calendar
