Jamie Dimon and Coinbase’s Armstrong Don't See Eye-to-Eye on Crypto Bill

Summary

Bloomberg Intelligence's Nathan Dean discusses the clash between banks and crypto companies over stablecoin yield and the progress of the Clarity Act in Congress. He analyzes lobbying power, noting the crypto sector's willingness to spend, and gives a 70% chance the bill passes despite potential hiccups.

• The Senate banking committee advanced the Clarity Act, but the yield issue remains a sticking point between banks and crypto.
• Banks oppose stablecoin issuers offering yield via platforms like Coinbase, while the Senate deal allows transactions and market making.
• Nathan Dean sees a 70% probability of the bill passing, partly due to crypto's strong lobbying across both parties.
• The debate is shifting to ethics and anti-money laundering provisions as the bill heads to the Senate floor.
• Crypto lobbying spending has been aggressive, particularly in House agricultural committees, giving it leverage against TradFi.