It’s not about the petrodollar, Jamie Dimon doesn’t want to give up demand deposit account holders to crypto yield, as they are super cheap cost of capital for JPMC to lend against.

As the bill came closer to a vote in the Senate Banking Committee in May, internal rifts between the banks started to emerge. Large depositors, such as JPMorgan Chase, remained strongly opposed. Other banks, which draw more of their revenue from activities like trading and are less threatened by competition from crypto platforms, were more willing to overlook the yield issue, according to industry insiders.

https://www.thebignewsletter.com/p/monopoly-round-up-the-slo...

Banks like getting deposits from customers, because it’s cheap. On the other side of the ledger, banks make loans. There’s a myth that banks accept deposits and make loans with those deposits. That’s not true, banks first make loans and then find the deposits to finance those loans. If they can’t get enough deposits from local customers to match their loans, they will acquire higher cost deposits in various money markets. If they have deposits and not enough loans, they can just put their extra cash at the Fed, and make a guaranteed 3.6%.

Profits are easy, as the Fed gives high rates to banks while banks offer low returns to depositors. This dynamic is particularly the case for the largest banks. JP Morgan, for instance, made $96 billion in net interest margin in 2025.

“Your margin is my opportunity.”