JPMorgan Chase CEO Jamie Dimon is strongly opposing the CLARITY Act, warning that stablecoins offering yield could lead to a 'shadow banking' crisis similar to 2008. Banks argue they lack regulatory safeguards, while crypto firms see them as consumer choice.
JPMorgan CEO Jamie Dimon strongly opposes the CLARITY Act, warning that yield-paying stablecoins could create a 'shadow banking' crisis similar to 2008. He vows to fight the bill, which aims to regulate digital assets but faces debate over interest payments on stablecoins.
Swedish fintech Klarna has applied to federal and state regulators to establish a U.S. bank subsidiary, Klarna Bank USA, chartered in Utah and backed by FDIC. This move aims to bring banking operations in-house, offer broader consumer services, and enhance competition in the market.
Trace Finance, a stablecoin settlement infrastructure company, has raised $32 million in a Series A funding round led by CoinFund. The funds will be used to expand its cross-border payment services across Latin America, the US, and Asia-Pacific markets.
Coinbase is reportedly exploring a loophole in the CLARITY Act, which aims to ban passive interest on stablecoins. By integrating with Ethena, a synthetic dollar protocol, Coinbase could offer activity-based rewards, potentially bypassing regulations and frustrating traditional banks.
For most of its life, crypto lived outside the financial system. If you wanted to move dollars in or out of an exchange, that money still had to pass through a regular bank somewhere along the way. Most people assumed it would stay that way until Washington finally decided how to regulate it. But that […] The post Crypto to enter the US banking system through a backdoor, not through regulation appeared first on CryptoSlate.
