JPMorgan supports the U.S. cryptocurrency bill and advocates for clear rules for digital assets, but the bank insists: the new regulatory system must close dangerous loopholes, not open new ones for the market.
Main Points
- JPMorgan Chase supports the creation of a legal framework for digital assets.
- The bank demands comparable standards for crypto-assets and platforms that operate as securities, exchanges, or brokers.
- JPMorgan pays special attention to the regulation of stablecoins and tokenized deposits.
The bank’s position came amid negotiations around the Clarity Act. The U.S. Senate is trying to advance the bill before the August recess, and market participants hope the document will be brought up for consideration as early as July.
Umar Farooq, global co-head of payments at JP Morgan, and Peter Muriungi, CEO of the Digital Assets and Blockchain Solutions division, said that long-awaited rules could help the crypto industry develop. But this will only work if the U.S. Congress builds a system without regulatory failures.
The bank recognizes the potential of tokenization and programmable money. These technologies can speed up payments, shorten settlement times, reduce costs, and make cross-border money movement more efficient. For institutional investors, such infrastructure can be especially important as it promises faster and more transparent operations, and for banks, it opens new business models around settlements and digital assets. But risks remain: volatility, cyber threats, and regulatory uncertainty can quickly turn innovation into a source of problems.
What Is Known About JPMorgan’s Crypto Direction
JPMorgan already sees digital assets not as a side topic, but as part of the payments and settlement infrastructure: the bank focuses on tokenization, programmable money, and services for institutional clients.
JPM Coin follows the same logic: it is JPMorgan’s digital settlement instrument for institutional clients and internal bank settlements, not a public cryptocurrency for the broad retail market.
JPMorgan approaches bitcoin as part of the broader digital asset market: for the bank, it is more important not to promote a specific coin, but to ensure that trading, custody, and derivative services do not fall outside financial oversight.
With XRP, the logic is the same: the bank bets not on individual public tokens, but on regulated infrastructure and its own settlement solutions like JPM Coin.
Loans secured by crypto-assets in this model are products where collateral volatility control, risk requirements, and clear client responsibility are especially important. Therefore, JPMorgan links the development of such services to the same basic principles: sufficient capital, liquidity, client protection, and clear law enforcement.
At the same time, JPMorgan focuses not on the crypto market’s promotional promises, but on risks. The bank warns: innovation should not become a way to bypass rules that have protected clients and the stability of the financial system for years.
Why the Bank Demands Equal Rules for the Crypto Market
JPMorgan’s logic is simple: if an asset performs the functions of a security, it should be regulated as a security. It does not matter whether it was issued on a blockchain or in a more traditional form.
The bank proposes the same approach for trading platforms. If a decentralized platform essentially operates as an exchange or broker, it should meet standards for disclosure, client protection, and prevention of market abuse.
For JPMorgan, cryptocurrency should not exist in a separate legal reality. Bitcoin, tokenized assets, stablecoins, and other instruments can develop, but their use should not undermine the basic principles of financial oversight.
Who Regulates Cryptocurrency in the U.S.
Oversight of cryptocurrencies in the U.S. is divided among several agencies. The SEC is responsible for assets and platforms that fall under the securities regime; the CFTC is linked to derivatives and commodity markets; FinCEN monitors compliance with anti-money laundering rules and client identification.
This is why, for JPMorgan, not only the wording of the Clarity Act is important, but also how the new law divides regulatory powers and does not leave convenient loopholes for market participants.
Stablecoins Have Become One of the Most Sensitive Topics
A separate block of warnings concerns stablecoins and tokenized deposits. Banks see them not only as a new market, but also as a source of competitive pressure on traditional deposits.
JPMorgan believes that products similar to bank accounts should not operate outside requirements for capital, liquidity, and consumer protection. If a client stores funds in an instrument that looks like a deposit, they may expect the same guarantees, although in practice they may not exist.
Bonuses, rewards, and cashback for holding balances are of particular concern. According to the bank, such incentives can create a false sense of security for users and increase the risk of mass withdrawals during market stress.
This position echoes statements by Jamie Dimon. The head of JPMorgan has long criticized stablecoin yields and believes that crypto companies should not compete with bank deposits without comparable regulatory obligations.
“Banks will not accept this,” Jamie Dimon said, promising to fight this issue “down to the last tiny detail.”
During negotiations on the Clarity Act, lawmakers did not support the idea of a complete ban on such rewards, which the banking industry insisted on. Nevertheless, banks continue to push for stricter limits.
What Disputes Are Slowing the Progress of the Clarity Act
The bill has already passed the Senate Banking Committee, but several issues remain controversial. Negotiators are discussing ethical rules for senior officials connected to the crypto market, protection of decentralized finance developers from liability, standards for stablecoin yields, and demands from Democrats on the Senate Agriculture Committee.
Among the expected initiatives, the Clarity Act remains at the center of the agenda: it should determine which digital assets and platforms fall under specific oversight regimes and make rules clearer for companies, investors, and regulators. Separate standards for stablecoins are being discussed, including the issue of yields and incentives for holders.
For the market, the main catalysts could be the adoption of new laws, actions by the SEC, CFTC, and FinCEN, the launch of regulated infrastructure solutions, and more active participation by institutional investors.
If the rules become clearer, the industry could gain more transparency and trust. At the same time, it will become harder for unregulated players to operate in gray areas, and innovation will develop within stricter boundaries.
Industry groups remain cautiously optimistic and hope that the U.S. Senate will be able to consider the document in July. But analysts warn: if the bill is not passed before the August recess, its chances of becoming law in 2026 will noticeably decrease.
JPMorgan also insists that rules for digital assets must maintain strong anti-money laundering tools and law enforcement mechanisms. According to the bank, overly broad exemptions for certain parts of the crypto ecosystem could create zones where it is easier to hide illegal financial operations and manipulate the market.
Digital assets can improve payments and settlements, including operations involving the U.S. dollar, but only with rules that do not undermine trust in the financial system.
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