Ripple Chief Executive Officer Brad Garlinghouse has criticized JPMorgan Chase CEO Jamie Dimon over comments on the CLARITY Act, arguing that the banking executive’s opposition reflects an effort to protect JPMorgan’s legacy payments business rather than a concern over crypto compliance.
Speaking during a Fox Business interview, Brad Garlinghouse said Dimon has criticized digital assets for years, including earlier remarks describing Bitcoin as a “pet rock” and the crypto industry as a Ponzi scheme. He said JPMorgan generates about $20 billion in annual revenue from its payments business and more than $5 billion in profit, giving the bank a direct financial interest in preserving the current system.
The exchange comes as lawmakers continue working through the Digital Asset Market Clarity Act, a bill intended to establish clearer federal rules for digital asset markets. Galaxy Digital has placed the odds of the bill passing before the August recess at 60%, down from an earlier estimate, as lawmakers face a tight calendar and continued disagreement over banking, stablecoin, compliance, and developer-protection provisions.
Brad Garlinghouse Pushes Back on Dimon’s Crypto Claims
Garlinghouse said Dimon’s criticism of the CLARITY Act mischaracterizes the bill by suggesting that crypto firms are seeking to avoid oversight or weaken compliance standards. The Ripple CEO said the industry wants clear regulation and argued that the bill would bring more digital asset activity into U.S. markets rather than pushing trading offshore.
He said about 90% of crypto trading currently takes place outside the United States, which he argued leaves American consumers with fewer domestic protections. In Garlinghouse’s view, a federal framework would allow more trading, payments activity, and institutional adoption to occur under U.S. rules.
Dimon has objected to parts of the bill, including provisions that could allow crypto companies and stablecoin issuers to offer rewards or yield. Banking groups have argued that yield-bearing stablecoins could draw deposits away from traditional banks and credit unions, potentially affecting local lending and the broader deposit base.
Garlinghouse responded that JPMorgan’s position should be viewed in the context of its existing payments revenue. He said Dimon is trying to protect a profitable business line and maintain a competitive moat as crypto companies develop faster settlement, stablecoin payments, and blockchain-based financial infrastructure.
CLARITY Act Debate Moves Through Washington
The CLARITY Act has become a central point of debate between crypto companies, banks, lawmakers, and law enforcement groups. As we reported, more than 200 crypto firms and advocacy organizations, including Ripple, Coinbase, Circle, Kraken, Binance.US, and Andreessen Horowitz, have urged Senate leaders John Thune and Chuck Schumer to bring the bill to a floor vote.
Supporters say the legislation would define when digital assets are treated as securities or commodities, clarify the roles of the Securities and Exchange Commission and Commodity Futures Trading Commission, and create registration pathways for market participants. Senator Cynthia Lummis said the bill draws a needed line between digital assets that are securities and those that are commodities.
The bill has also faced scrutiny over developer protections derived from the Blockchain Regulatory Certainty Act. White House officials recently hosted law enforcement groups, administration officials, and congressional staff to discuss whether those provisions could make it harder to combat illicit finance.
The meeting was hosted by Patrick Witt and the White House Crypto Council at the Eisenhower Executive Office Building. Around 20 attendees were present, including officials from Treasury, FinCEN, Senate staff, and law enforcement groups such as the Fraternal Order of Police, the National Association of Police Organizations, the International Association of Chiefs of Police, the National District Attorneys Association, and the National Association of Assistant U.S. Attorneys.
Ripple Sees Enterprise Demand From Regulatory Clarity
Brad Garlinghouse said regulatory certainty could allow banks, corporate treasurers, payment providers, and prime brokerage clients to adopt digital asset tools with less concern about future enforcement shifts. He said Ripple has continued growing without full U.S. clarity, with much of that growth occurring outside the dollar market.
The Ripple CEO said the company expects to end the year with a $1 billion revenue run rate, excluding XRP held on its balance sheet. He pointed to Ripple Treasury, a dashboard-style infrastructure product for CFOs managing global liquidity and multiple currencies, as one of the company’s fastest-growing areas.
Garlinghouse also discussed Ripple’s RLUSD stablecoin, saying CFOs are increasingly asking how stablecoins can fit into corporate treasury operations. He said RLUSD has become a top-five stablecoin about 18 months after launch, while Ripple continues expanding across payments, stablecoin infrastructure, and enterprise liquidity management.
Ripple has also launched an AI starter kit for the XRP Ledger, aimed at helping developers build agent-powered applications and payment functions. Garlinghouse said AI agents may eventually make payments, but he cautioned that stronger protections and structure are needed before users connect autonomous agents to bank or brokerage accounts.
