JPMorgan Supports U.S. Crypto Framework While Pressing for Stronger Safeguards
JPMorgan has backed congressional efforts to establish a U.S. digital asset framework but warned that the legislation must preserve protections applied in traditional finance. The bank called for stricter standards covering crypto platforms, stablecoins and illicit-finance risks.
What happened?
JPMorgan has backed congressional efforts to establish a U.S. digital asset framework but warned that the legislation must preserve protections applied in traditional finance. The bank called for stricter standards covering crypto platforms, stablecoins and illicit-finance risks.
Why it matters
JPMorgan has endorsed efforts to create a U.S. regulatory framework for digital assets while urging Congress to close existing oversight gaps. In a blog post, senior executives Umar Farooq and Peter Muriungi said pending market-structure legislation could help the industry mature if it combines regulatory clarity with strong safeguards.
JPMorgan has endorsed efforts to create a U.S. regulatory framework for digital assets while urging Congress to close existing oversight gaps. In a blog post, senior executives Umar Farooq and Peter Muriungi said pending market-structure legislation could help the industry mature if it combines regulatory clarity with strong safeguards.
The bank’s position matters because the Digital Asset Market Clarity Act could shape how crypto assets and platforms operate in the United States. The Senate is seeking to advance the bill before its August recess, although lawmakers are still negotiating issues including government ethics, protections for decentralized finance developers, stablecoin rewards and illicit-finance controls.
JPMorgan argued that assets functioning like securities should remain subject to securities laws even when issued on a blockchain. It also said decentralized platforms acting as exchanges or brokers should meet comparable standards for disclosure, customer protection and market integrity.
The executives acknowledged that tokenization and programmable money could accelerate payments, shorten settlement times and improve cross-border transfers. However, they warned that stablecoins and tokenized deposits resembling bank products should not operate outside comparable capital, liquidity and consumer-protection requirements.
JPMorgan also raised concerns that rewards or cashback on stablecoin balances could lead customers to assume protections that may not exist, potentially encouraging rapid withdrawals during market stress. The bank further urged lawmakers to preserve anti-money-laundering and law-enforcement powers, warning that broad exemptions could create openings for illicit finance and market manipulation.