JPMorgan's Dimon Says Crypto Firms Should Become Banks as Bill Drags

In an interview with CNBC on 2 March, Dimon said firms that are "holding balances and paying interest" are effectively operating like banks and "should be regulated like a bank."

He pointed to what he described as a regulatory imbalance, reminding that banks face several requirements currently not applied to crypto companies. "Banks have restrictions and requirements, FDIC insurance, money laundering requirements, reporting requirements," he said. "If you want to be a bank, become a bank, then you can do whatever you want under the bank laws." 

Dimon also warned against allowing products that resemble bank deposits to operate outside the traditional regulatory framework, cautioning that if standards are weakened, the public "will pay" and "it will get bad." 

Dimon historically made sceptical remarks about crypto, labelling Bitcoin a "fraud" in 2017, although his tone softened over the years as JPMorgan added more projects related to blockchain and tokenization. His remarks echo concerns raised by banking trade groups, which have argued that allowing stablecoin issuers to offer rewards could accelerate deposit outflows from the banking system, particularly during periods of stress. 

Guardrails, not bank rules 

Dimon’s comments come as lawmakers continue negotiating broader digital asset market structure legislation, even after Congress enacted the GENIUS Act, which established federal guardrails for payment stablecoins. 

The GENIUS law requires issuers to fully back their tokens one to one with cash or short-term US Treasuries, segregate those reserves and provide regular disclosures. It also subjects issuers to federal or state oversight and requires compliance with anti-money laundering and Bank Secrecy Act rules.  

Still, the law stops short of turning stablecoin companies into full banks. For instance, it does not require deposit insurance from the Federal Deposit Insurance Corporation – referenced by Dimon – and does not impose the same capital and liquidity standards that apply to large commercial lenders. 

That difference is at the center of the policy divide. Banks argue that once a company begins paying something that resembles interest, it is competing with insured deposits and should face equivalent supervision. 

A middle path 

Some companies have chosen a middle route by seeking banking licences. Crypto.com and Ripple have recently received conditional approval from the Office of the Comptroller of the Currency (OCC) for national trust bank charters, bringing parts of their operations under federal supervision.  

However, a national trust bank is not the same as a traditional commercial bank. One of the key differences is that it is not by default covered by federal deposit insurance.  

As negotiations remain stalled, Ripple CEO Brad Garlinghouse struck a more conciliatory tone last week, saying on 28 Feb that "the door to a deal is wide open." 

Dimon, for his part, stressed that JPMorgan is not opposed to blockchain innovation. "We are in favor of competition, but it’s got to be a fair and balanced playing field."