Coinbase CEO Brian Armstrong and JPMorgan CEO Jamie Dimon clashed over the proposed CLARITY Act during the Davos summit, highlighting its potential impact on crypto exchanges and financial regulations. Armstrong criticized the bill for potentially restricting yield products on stablecoins, which are crucial to Coinbase's revenue. Dimon countered by challenging Armstrong's portrayal of banks' opposition to crypto firms. The CLARITY Act could significantly alter the regulatory landscape, potentially favoring banks over crypto exchanges by expanding AML obligations and affecting yield offerings. This development raises concerns about increased scrutiny on crypto exchanges and their ability to maintain revenue streams from yield products. As regulatory frameworks evolve, the crypto industry faces potential operational and financial challenges.