A conflict between Coinbase CEO Brian Armstrong and JPMorgan CEO Jamie Dimon has brought the CLARITY Act back into the spotlight. The confrontation occurred in the meetings at the World Economic Forum in Davos. Meanwhile, new details have emerged about who will attend the planned White House meeting of banking and crypto executives.
CLARITY Act Causes Confrontation At Davos Meeting
According to a WSJ report, Armstrong sought to meet with senior bank officials to discuss the pending crypto bill in the Senate. Several accounts disclosed that the Coinbase CEO received a cold reception from these bank leaders. In one interaction, Dimon accused Armstrong of lying that banks were lobbying lawmakers against crypto companies.
Also, Bank of America CEO Brian Moynihan stated that companies that offer services that resemble deposits must comply with bank regulations. The report also stated that Wells Fargo and Citigroup executives limited their interactions with Armstrong.
Armstrong recently revealed that Coinbase won’t endorse the CLARITY Act in its current form. He cautioned that certain provisions would prevent exchanges from offering yield products. Hence, such a prohibition may impact their revenues and user incentives.
Nevertheless, the Senate Agriculture Committee has passed its CLARITY Act portion. The bill passed the committee stage after the Republicans outvoted the Democrats 12 to 11. Democrats appeared to vote against the bill’s passage out of committee over the proposed ethics amendment. The next step is for the Senate Banking Committee to approve its part of the CLARITY Act to enable the Senate to discuss the crypto bill.
White House Clarifies Meeting Format
The White House will meet with bank and crypto executives on Monday to address any concerns regarding the CLARITY Act. New information regarding the intended White House meeting between crypto and banking executives indicates it will not include the top CEOs.
The session is modelled not as a C-suite meeting but as a working-level policy meeting, according to crypto journalist Eleanor Terrett. It implies that the CEOs of Coinbase and large banks will not be present. As an alternative, the participants in the meeting will consist of senior policy executives and representatives of trade groups. The Head of U.S. Policy at the top crypto exchange, Coinbase, Kara Calvert, will likely attend.
As Terrett noted, the session is a working discussion, not a debate. The aim is to make an organized discussion on stablecoin yield and corresponding regulations. Officials are said to be keen on ensuring neither party feels pressured or outnumbered during negotiations. It is also likely to be the first of many policy meetings.
Source: https://coingape.com/clarity-act-coinbases-brian-armstrong-and-jpmorgans-jamie-dimon-clash-over-crypto-bill/
