With talks over U.S. crypto legislation still at a standstill, Jamie Dimon, Chairman and CEO of JPMorgan Chase, said companies offering yield on digital tokens are essentially acting like banks and should be regulated accordingly.

In a 2 March interview with CNBC, Dimon argued that firms “holding balances and paying interest” are functioning as banks and therefore “should be regulated like a bank.” He highlighted what he sees as a regulatory gap, noting that banks must meet strict standards — including FDIC insurance, anti-money laundering rules, and extensive reporting obligations — that many crypto firms do not. “If you want to be a bank, become a bank,” he said, adding that operating under bank laws comes with clear responsibilities.

Dimon cautioned against allowing deposit-like products to exist outside the traditional regulatory framework, warning that easing standards could ultimately harm the public.

Although Dimon famously called Bitcoin a “fraud” in 2017, his stance has moderated as JPMorgan expanded into blockchain and tokenization initiatives. His latest comments mirror concerns from banking trade groups, which argue that letting stablecoin issuers offer rewards could draw deposits away from banks — especially during times of financial stress.

Guardrails, not full bank oversight

Dimon’s remarks come as lawmakers continue debating broader digital asset market structure reforms, even after Congress passed the GENIUS Act to set federal standards for payment stablecoins.

The law requires issuers to fully back tokens one-to-one with cash or short-term U.S. Treasuries, keep reserves segregated, provide regular disclosures, and comply with anti-money laundering and Bank Secrecy Act rules. It also places issuers under federal or state supervision.

However, it stops short of granting them full bank status. Stablecoin firms are not required to obtain FDIC deposit insurance — a point Dimon referenced — nor must they meet the same capital and liquidity standards imposed on major commercial banks.

That distinction lies at the heart of the debate. Banks maintain that once a firm begins offering interest-like returns, it competes directly with insured deposits and should face comparable regulatory scrutiny.

A middle-ground approach

Some crypto companies have opted to pursue banking licenses. Crypto.com and Ripple recently received conditional approval from the Office of the Comptroller of the Currency for national trust bank charters, placing parts of their operations under federal oversight.

Still, a national trust bank differs from a traditional commercial bank, notably because it does not automatically come with federal deposit insurance.

As negotiations remain unresolved, Brad Garlinghouse struck a more optimistic tone on 28 February, saying “the door to a deal is wide open.”

Dimon, meanwhile, emphasized that JPMorgan supports blockchain innovation but insists competition must occur on a level regulatory playing field.