The bank emphasizes the need for regulatory clarity alongside safeguards as the Senate works on the Clarity Act.
By Helene Braun|Edited by Cheyenne Ligon Jun 29, 2026, 5:31 p.m. 3 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on (Zamek/VIEWpress)SummaryShow- JPMorgan is in favor of U.S. legislation aimed at establishing a regulatory framework for digital assets, but cautions that new regulations should address existing gaps rather than create new ones.
- In a recent blog post, senior leaders stressed that crypto assets and platforms similar to securities, exchanges, or brokers should adhere to the same standards for investor protection, disclosure, and market integrity as traditional finance.
- The bank called on lawmakers to implement stringent protections for stablecoins and tokenized deposits, incorporating capital, liquidity, and consumer protection requirements akin to those for banks, while maintaining robust anti-money laundering and enforcement measures as discussions on the Digital Asset Market Clarity Act continue.
JPMorgan expressed its support for the establishment of a U.S. regulatory framework for digital assets but highlighted the importance of recognizing the associated risks alongside potential benefits.
In a blog post released on Monday by Umar Farooq, global co-head of JP Morgan Payments, and Peter Muriungi, CEO of Digital Assets and Blockchain Solutions, the bank argued that upcoming market structure legislation has the potential to advance the industry, provided it effectively addresses regulatory gaps without introducing new ones.
Rather than merely focusing on the positive aspects of crypto, JPMorgan's message largely centered on the potential pitfalls if Congress fails to enact appropriate regulations. The bank consistently warned against allowing digital assets to bypass the protections that are standard in traditional finance, asserting that innovation without adequate oversight could lead to greater risks for consumers and the overall financial system.
Farooq and Muriungi acknowledged that advancements such as tokenization and programmable money could enhance payment speed, decrease settlement times, and facilitate cross-border money transfers. However, they contended that these advantages would only be realized if lawmakers ensure regulatory clarity is paired with strong consumer protections.
This blog post comes as the Senate is working to expedite the Digital Asset Market Clarity Act before its August break. Although the bill has passed the Senate Banking Committee, negotiators are still addressing several contentious issues, including ethical guidelines for senior government officials with crypto connections, liability protections for decentralized finance developers, stablecoin yield regulations, and concerns raised by Senate Agriculture Committee Democrats.
While industry representatives remain hopeful that the legislation will reach a vote in July, analysts have cautioned that failing to pass it before the August recess could significantly diminish its likelihood of becoming law this year.
According to JPMorgan, assets that behave like securities should continue to comply with securities laws, regardless of whether they are issued via blockchain technology. Similarly, decentralized trading platforms that operate like exchanges or brokers should adhere to the same standards pertaining to market integrity, disclosure, and customer protection.
The bank also highlighted the importance of stablecoins, an area where many financial institutions see both opportunities and competitive challenges. Although stablecoins and tokenized deposits may enhance payment efficiency, the executives cautioned against permitting products that mimic bank deposits to operate outside the established capital, liquidity, and consumer protection regulations applicable to banks. They noted that features like rewards or cashback for maintaining balances could mislead consumers into believing they have protections that might not be in place, thereby increasing the risk of swift withdrawals during market downturns.
This caution mirrors sentiments expressed by JPMorgan CEO Jamie Dimon, a prominent critic of stablecoin yield practices within the banking sector. Banks argue that allowing stablecoin issuers to provide rewards or yields on customer balances enables crypto companies to compete with traditional deposits without adhering to the same capital and regulatory requirements.
Although the industry’s call for an outright ban was dismissed during negotiations over the Clarity Act, banks continue to advocate for stricter regulations. Dimon remarked earlier this month, "The banks will not accept it that way," vowing to push the issue "down to the wire."
Furthermore, the bank emphasized that any digital asset legislation should maintain anti-money laundering and law enforcement mechanisms, warning that broad exemptions for segments of the crypto sector could lead to vulnerabilities in preventing illicit financial activities and market manipulation.
Clarity ActJPMorganLatest Crypto News- 1Bitcoin lending is entering a new institutional era, according to Silicon Valley Bank3 minutes ago
- 2Private keys, not smart contracts, caused 40% of crypto's $16 billion hack losses. Here's what's being done.2 hours ago
- 3White House to speak with law enforcement groups to push Crypto's Clarity Act2 hours ago
- 4J.P. Morgan broadens blockchain settlement network as banks modernize cross-border payments2 hours ago
- 5Crypto analytics firm Chainalysis proposes standards for blockchain tracing 2 hours ago
- 6MiCA's looming deadline could leave 10 million crypto users without a platform in the EU2 hours ago
- 7Ripple wants institutions to borrow against tokenized assets on XRPL3 hours ago
- 8Wall Street's BNY expands stablecoin services for institutions, starting with Circle's USDC3 hours ago
- 9Strategy opens door to selling billions of bitcoin under new capital plan. Here's what it means3 hours ago
- 10Ukraine transfers $8.3 million in seized crypto amid potential plans for strategic reserve3 hours ago
The Evolution of the Crypto CEX Landscape: A Case Study on Binance
The Evolution of the Crypto CEX Landscape: A Case Study on Binance
Binance remains crypto’s leading exchange, expanding from spot and derivatives into RWAs, payments, savings, yield, and broader financial services.
By CoinDesk Research7 hours agoCommissioned byBinanceBinance remains crypto’s leading exchange, expanding from spot and derivatives into RWAs, payments, savings, yield, and broader financial services.
Why it matters:
Binance remains crypto’s leading exchange, expanding from spot and derivatives into RWAs, payments, savings, yield, and broader financial services.
View Full ReportMore From Policy