A tense moment involving JPMorgan CEO Jamie Dimon and Coinbase CEO Brian Armstrong has put a spotlight on a growing fight between Wall Street banks and the crypto industry.
The clash happened last week at the World Economic Forum in Davos. Armstrong was having coffee with former UK Prime Minister Tony Blair when Dimon suddenly stepped in. Pointing directly at Armstrong, Dimon bluntly told him, “You are full of s—,” according to the Wall Street Journal.
Dimon was clearly angry. He accused Armstrong of misleading the public, especially after Armstrong said in TV interviews that big banks were lobbying lawmakers to block crypto-friendly laws.
That awkward exchange summed up a much bigger battle that’s now unfolding.
Banks aren’t just annoyed — they feel threatened.
While many major banks have slowly warmed up to crypto for trading and payments, they are drawing a hard line against crypto companies offering “rewards” on stablecoins. These payouts, often around 3.5%, look a lot like interest. Banks warn that if customers move their money into crypto platforms, it could drain trillions of dollars in deposits from the traditional banking system.
Crypto firms see it differently. They argue this is simply competition. If banks don’t like it, they say, banks can raise rates or offer stablecoins themselves.
The fight now centers on a proposed U.S. law called the Clarity Act, which would shape how digital assets are regulated. Banks want strict rules, saying crypto firms shouldn’t be allowed to act like banks without following banking regulations. Crypto companies argue the rules are designed to protect banks, not consumers.
Brian Armstrong has become the face of this battle.
At just 43 years old, the CEO of $55 billion Coinbase has turned into crypto’s most powerful political voice. He has openly warned lawmakers that bad legislation could cost Coinbase billions. He’s even shown he’s willing to walk away from deals he doesn’t like.
That strategy recently worked. Armstrong’s public pressure helped stall a Senate vote, catching many lawmakers off guard.
Because of that, the debate has shifted. It’s no longer just crypto versus finance. Many now see it as Coinbase versus the banks.
With the White House planning talks between banking and crypto leaders — and Armstrong’s support seen as crucial — the outcome could reshape how money moves in the U.S., who controls deposits, and what the future of finance really looks like.
One thing is clear: this fight is only getting louder.
