LEAKED: Did JP Morgan Just REVEAL The TRUTH About The Clarity Act?! | EP 1537

**Nico** (0:01)
Yo, Jp Morgan just surprised everyone with their new take on the Clarity Act this morning. It seems like they've had a massive change of heart, and everyone is asking why now. But before we show you today's update, let's do a little bit of a vibe check, and let's not forget what Jamie Dimon said about the Clarity Act just four weeks ago.

**Kent** (0:23)
So are you happy with the way the Clarity Act is turning out?

**Jamie Dimon** (0:27)
No, no, because it allows them to effectively pay interest on deposits, stable coins or something like that, without the protection that they should have. And it doesn't do anything for AMLBSA. It has almost no legal protections. So no, the banks will not accept it that way. And the ABA, the small banks, the credit unions, it's not just the big guys. I'm not worried about stable coin, but if it happened, I'm telling you, I would have nothing to do with it, and it would eventually blow up on its own. Okay, but that's my personal thing, but I do understand the concern of all the other banks.

**Kent** (0:58)
Well, the markup is coming. I mean, what are you going to do about it?

**Jamie Dimon** (1:00)
It is, we'll fight it. If we lose, we lose, and we'll live.

**Kent** (1:03)
Okay.

**Jamie Dimon** (1:03)
But it will be fought. This will not be, no one's going to bow down to this guy, okay, or that company. And he's the only one, and he's spending hundreds of millions of dollars in watching to this thing.

**Kent** (1:14)
He said he's representing the whole industry.

**Jamie Dimon** (1:16)
He's full of shit.

**Nico** (1:19)
Well. Shots fired. I mean, like think about the progress that has been made. And I also have to give a lot of credit to Senator Lummis, the Bitcoin senator, and of course, Brian Armstrong, for taking the high road and not taking the bait of Jamie Dimon. Like, I mean, Jamie Dimon is literally saying that the CEO of Coinbase is full of caca on live television. Like, I'm pretty sure that they got fined for him saying those words on TV. Like, the reporter was, like, kind of jaw-struck. And then, of course, there was a couple interviews that followed with Senator Lumis. Senator Lumis excellently threaded the needle where she was like, listen, I'm gonna give him the benefit of the doubt. He could be misleading people, but I'm gonna say that he just hasn't read the bill, and I'm gonna give him the benefit of the doubt. But there are the protections that Jamie Dimon says that there isn't. And Brian Armstrong, again, it seems like he got some media training, again, took the high road, did not take the bait, did not take the character attack seriously, and he was just like, listen, look, the reality is that this bill does add the protections that he says it doesn't add. So I think what I want everyone to focus on, we've been talking about this for the last couple of weeks, is I don't think it has anything to do with protections. I think it has to do with the fact that for the first time, these big banks that, I don't wanna use the word cartel, but they're using cartel-like behavior by forcing the hand of government to get a certain business outcome.
You know, they don't want competition from these new financial platforms or whatever you wanna call it. And the competition that they see is that these financial platforms are offering interest on deposits. That's ultimately what it comes down to.
But there's been a change of heart and that's what today's news is all about. So one massive bank that has tens of, I don't know, Opti, I think it was tens of trillions, I think, last time I checked, under management, I'm talking about Jp Morgan Chase Bank, came out with an announcement, I think it was a couple days ago, yesterday, and here's the headline from Bitcoin Magazine, Jp Morgan backs US crypto bill, but puts a warning label in front and center as Senate I's August deadline. So let's get into some of the details. And of course, joining me in the studio today is the CEO of Saz Mining, we got Kent in the house. Kent, thank you so much for joining us here in the Miami studio.

**Kent** (3:50)
Yeah, it's a pleasure to be on this side of the camera with you instead of just remotely in the Amazon.

**Nico** (3:55)
I know, it's so different in real life, right? The energy, the vibes, I'm loving it. Yeah, it's fun. So let's jump back into this, ladies and gentlemen. Jp Morgan threw its support behind federal digit asset legislation Monday, but the bank's message to Congress was as much as a caution as an endorsement. Get the framework right, or risk recreating the financial vulnerabilities regulation was designed to prevent. And I'll push back a little bit on that. And the reason I'm pushing back a little bit on that is we always hear that word, it's for the children, it's the regulations are here to protect people. But if we all remember the 2008 financial crisis, there was regulations in place, everything was regulated. And still, what ended up happening ultimately, let's just focus on the facts. It was Main Street that ended up bailing out Wall Street. No big banker went to jail for what happened in 2008 And I would say that caused more material harm to the American people than anything that Bitcoin or the broader crypto industry as a whole has caused. So we'll leave it at that. So I don't buy the regulation argument whatsoever. I think that's just an argument that they're using to say, hey, listen, we just don't like competition. So the article goes on to say, in a joint op-ed, global co-head of Jp Morgan Payments and CEO of Digital Assets and Blockchain Solutions argued that the United States has a genuine opportunity to lead in digital finance, provided lawmakers pair regulatory clarity with durable safeguards. The piece arrived as the Senate races to advance the Clarity Act before its August resets, with negotiators still working through sticking points on stable coin yield provisions, ethic rules for government officials with crypto ties, and liability protections for decentralized finance developers. I think as Bitcoiners, the part that we really care about, and unfortunately these large pieces of legislation, they get grouped together, what we care about in the Bitcoin community is protections on self-custody on the legislative side, and liability protections for decentralized finance developers. So that basically means open source developers. That's what we really care about on the Bitcoin side of things. It's unfortunate though, that it gets all grouped into this massive giant crypto bill that we're seeing. It goes on to say, regulatory clarity matters only if paired with durable safeguards. The op-ed stands out less for what it celebrates than for what it warns against. Rather than leading with the promise of tokenization and programmable money, the executives spent much of their argument flagging how crypto innovation could go wrong without proper guardrails. What are those proper guardrails? I mean, it wasn't too long ago that TD Bank was fined an ungodly amount of money for facilitating illegal drug trafficking, right? So there was guardrails in place there, and they still didn't really stop anything. And what I find ironic about that particular case, the TD Bank case, is that again, no big bank executive went to jail. Now compare and contrast that with our industry. What happened under the previous administration? We had some of the biggest Bitcoin slash crypto entrepreneurs literally jailed. I'm talking about CZ, I'm talking about Arthur Hayes, and of course I'm talking about the Samurai Wallet developers. So again, it's rules for thee, but not for me. It seems like the banking industry has some type of different levels of justice. And by definition, that isn't equal justice. So the article goes on to say, on market structure, Jp Morgan's position was blunt. The blockchain on which a product is issued does not change its economic function. Assets that look and behave like security should face disclosure, custody, and market integrity rules. Decentralized trading platforms that operate like brokers or exchanges should be held to the same standards. Tokenization, the executives argue, should improve how markets operate, not serve as a mechanism for bypassing the rules that have made US capital markets the most trusted in the world.