“You are full of s—” was the blunt message from JPMorgan Chase CEO Jamie Dimon to Coinbase founder Brian Armstrong during an unexpected confrontation at the World Economic Forum in Davos last week, after Armstrong publicly accused banks of trying to sabotage crypto legislation in Washington.
Dimon Disrupts Coffee Meet
Quoting sources, The Wall Street Journal reported that Dimon interrupted Armstrong while he was having coffee with former UK prime minister Tony Blair and told him to stop misleading the public about banks’ role in ongoing negotiations around digital asset regulation.
When contacted for a response, Coinbase's Chief Policy Officer Faryar Shirzad said, "The fight over rewards is really an anomaly in our collaborative relationship with the banks. We work closely with them, and have announced multiple partnerships where we power their digital asset infrastructure. The fight over rewards is one of these only-in-DC phenomena."
The clash at Davos captures growing friction between crypto firms and traditional lenders as digital assets push deeper into mainstream finance.
Increasing Hostilities Over Stablecoins
At the heart of the dispute is whether crypto platforms should be allowed to offer yield-like rewards on stablecoin holdings, payments banks say effectively compete with interest-bearing deposits.
Banks argue such payouts risk pulling large volumes of money away from the traditional banking system, potentially hurting lending activity, especially at smaller institutions.
Crypto firms counter that consumers deserve better returns and that banks can compete or launch their own stablecoin products if they choose.
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Major Banks Snub Armstrong
The tension wasn’t limited to Dimon.
Armstrong reportedly encountered resistance from several top banking executives throughout the Davos meetings.
Brian Moynihan of Bank of America told Armstrong during a meeting that if crypto companies want to offer bank-like services, they should operate under the same regulatory framework as banks.
Jane Fraser of Citigroup reportedly gave Armstrong only a brief audience, while Charlie Scharf of Wells Fargo declined to engage at all when approached.
The public disagreements come as Washington debates legislation that could determine how crypto firms operate within the U.S. financial system.
Lawmakers are trying to balance innovation with financial stability concerns, while both banks and crypto companies intensify lobbying efforts.
Armstrong, who co-founded Coinbase in 2012 and has since become one of crypto’s most visible policy advocates, has pushed for rules allowing exchanges to offer stablecoin rewards.
Banks, meanwhile, argue that if exchanges act like deposit-taking institutions, they should face the same scrutiny and capital requirements.
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