Brad Garlinghouse (브래드 갈링하우스), chief executive of Ripple, moved to rebut JPMorgan CEO Jamie Dimon (제이미 다이먼) after Dimon criticised the Clarity Act, a U.S. bill on cryptocurrency regulation.

On June 11, blockchain media outlet Decrypt said Garlinghouse said Dimon is distorting the bill and should more clearly explain why he wants to keep the current system.

At issue is a provision in the Clarity Act that allows stablecoin yield. The provision would allow cryptocurrency exchanges such as Coinbase to offer rewards to users who deposit stablecoins on their platforms. Dimon has criticised the provision, saying it could lower compliance concerns and make illegal activity easier.

Garlinghouse said those claims are not true. He said Dimon is "distorting reality to lower support for the Clarity Act."

He then claimed JPMorgan opposes the bill to protect its existing business structure. He said the bank wants to protect its current profitable business while not wanting cryptocurrency competitors to gain strength. Garlinghouse criticised Dimon, saying his remarks ultimately stem from an intent to protect the existing business and keep competitors in check.

The dispute highlights a core issue in the clash between the banking sector and the cryptocurrency industry over the Clarity Act. Whether to allow stablecoin yield is one of the most sensitive issues in the bill's debate process. Banking lobby groups strongly oppose it, while Coinbase CEO Brian Armstrong said he cannot support the bill if the provision is removed.

In a late May interview, Dimon claimed Armstrong is virtually the only person pushing for the provision. He also mentioned Coinbase is spending hundreds of millions of dollars in Washington for it, and at times delivered harsh criticism of Armstrong. Garlinghouse said he recognises Armstrong as a figure representing Coinbase, but stressed that the industry's overall demands are clear.

The bill's legislative process is continuing. The Clarity Act passed a key vote in a Senate committee last month and now faces final approval by the full Senate as the next step. The chances of it being enacted within this year have fallen somewhat. Users of prediction market Polymarket put the chance of the bill receiving a presidential signature this year at 47 percent, about 18 percentage points lower than a week earlier.

The debate over the Clarity Act is therefore spreading into a power struggle over leadership in the stablecoin market and banks' revenue structures. A clash between the cryptocurrency industry and the financial sector over the stablecoin yield provision is expected to continue during full Senate deliberations.