Jamie Dimon, the CEO of JPMorgan Chase & Co. (JPM), has a simple message for cryptocurrency companies that want to pay interest-like rewards on stablecoins: if you're going to act like a bank, you should be regulated like one.

In a CNBC interview, Dimon weighed in on the ongoing debate about stablecoin rewards, which has become a flashpoint in the broader crypto regulation discussion. His comments were a direct response to questions about his reported disagreements with Coinbase Global Inc. (COIN) CEO Brian Armstrong.

"If you are going to be holding balances and paying interest, that's the bank," Dimon said. "You should be regulated by a bank. If they want to be a bank, so be it."

But he did leave the door open for a middle ground. Dimon suggested that a workable "compromise" might involve paying rewards on transactions rather than on idle balances. That distinction, in his view, could help separate legitimate crypto activity from traditional banking functions.

The 'Level Playing Field' That Everyone Wants (But Defines Differently)

Dimon's core argument is about fairness—or what he calls a "level playing field." He pointed out that traditional banks operate under a mountain of regulations: deposit insurance requirements, anti-money laundering rules, liquidity and capital standards, transparency mandates, and various government oversight mechanisms.

"So, we're in favor of competition, but it's got to be fair and balanced, level playing field," Dimon argued.

Ironically, "level playing field" is the exact phrase Coinbase's Armstrong has used when criticizing traditional banks for what he sees as stifling competition. The two CEOs reportedly clashed at the World Economic Forum in January, with Dimon confronting Armstrong for "lying on television" about the banking industry's role in crypto.

This isn't just theoretical debate. The conflict recently turned legislative. Coinbase withdrew its support for a cryptocurrency market structure bill just hours before lawmakers were set to vote. The company's primary objection? A rule that would prohibit crypto platforms from paying rewards on idle stablecoin balances—something traditional banks can do with dollar deposits without similar restrictions.

Dimon made sure to note that his criticism of certain crypto practices doesn't mean he's against the underlying technology. He highlighted JPMorgan's own blockchain initiatives, including the JPM Coin deposit token and the bank's work in stablecoins and asset tokenization.

Coinbase didn't immediately return a request for comment.

Market Reaction: Shares of JPMorgan fell 0.21% in after-hours trading after closing 0.91% lower at $297.56 during Monday's regular session. The stock maintains a weaker price trend across short, medium, and long terms with an average momentum score, according to market data.