JPMorgan supports US crypto bill but warns of risks

JPMorgan Chase is throwing its support behind a US regulatory framework for digital assets, while simultaneously pressing the brakes on potential loopholes in the law. The bank is calling on lawmakers to maintain existing safeguards and avoid new risks, as the Senate negotiates the so-called Clarity Act.

Tokenisation and programmable money offer opportunities

According to JPMorgan, tokenisation and programmable money can deliver major benefits for payments and cross-border transactions. The bank sees potential in the technology, but argues that these advantages can only be realised if accompanied by the proper safeguards. Regulation must therefore not only provide clarity, but also embed concrete protections.

The bank states that the US Congress must couple regulatory clarity with robust security measures. In the current negotiations over the Clarity Act, JPMorgan considers it essential that lawmakers do not introduce new vulnerabilities while trying to modernise existing regulations.

Stablecoins must not bypass bank rules

A key point in JPMorgan’s position concerns stablecoins. The bank argues that stablecoins which closely resemble bank deposits should not be allowed to operate outside the prevailing rules on capital, liquidity and consumer protection. Anyone performing the functions of a bank, JPMorgan believes, should also meet the same requirements.

Additionally, the bank urges lawmakers to leave existing anti-money laundering and enforcement tools intact. JPMorgan sees creating a separate track for digital assets where these instruments do not apply as undesirable. The message is clear: innovation is welcome, but not at the expense of financial stability and consumer protection.