JPMorgan is backing crypto's CLARITY Act — sort of. Here's what to know.

Scott Melker explains how JPMorgan (JPM) is backing the CLARITY Act.

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Video Transcript

00:00 Speaker A

JP Morgan backs US crypto bill, but puts a warning label front and center as Senate eyes August deadline. So listen, we're getting these constant

00:12 Speaker A

updates as to the odds of the Clarity Act passing, right? And today the White House is meeting with law enforcement who complained about the Clarity Act to try to get them on board. But meanwhile, you have JP Morgan, quote unquote backing the US crypto bill. So Jamie Diamond called Bitcoin a fraud, called it a pet rock, called it a Ponzi scheme.

00:35 Speaker A

Now his bank supports the crypto bill, but it's kind of in the same way that a great white shark supports Australian Surfers.

00:43 Speaker A

Right? If you take a look at what they actually said, they started with we now support the clarity Act, but if you read the actual blog post from these two guys at JP Morgan, it's not JP Morgan, it's a monolith. Uh, they basically then went on to list every single risk and problem that exists with crypto. It was like great, uh, great misdirection where they will say, hey, we support this thing, but only if we get much stricter laws on stable coins, much stricter laws on tokenized assets, much stricter laws on how uh crypto moves and is regulated.

01:20 Speaker A

And of course, they got into the real part, which is that stable coins that act like bank deposits should face bank-like capital rules and pay no rewards or yield. So, once again, this is a continuation of Jamie Diamond's fight when he said that he would fight the Clarity Act tooth and nail.

01:40 Speaker A

But now they're just kind of uh playing both sides saying that we support this, but only if we get all of the things we want and more things that you didn't even know we wanted in the first place. So, the banks clearly lost the fight to ban crypto. That's originally what they wanted.

02:00 Speaker A

But now they're fighting to shape it and they need the clarity Act more than the crypto industry does because it will continue uh to give them stricter ways to control the industry that they did not yet get in the genius Act.

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