Key Facts

• JPMorgan's senior executives, Umar Farooq and Peter Muriungi, stated that crypto assets and platforms that function like securities, exchanges, or brokers should face the same investor-protection, disclosure, and market-integrity standards as traditional finance.
• The bank urged lawmakers to impose robust safeguards on stablecoins and tokenized deposits, including bank-like capital, liquidity, and consumer-protection rules, and to preserve strong anti-money-laundering and law-enforcement tools.
• JPMorgan argued that assets that function like securities should continue to follow securities laws regardless of whether they are issued on a blockchain, and decentralized trading platforms that serve as exchanges or brokers should be held to the same standards for market integrity, disclosure, and customer protection.
• The bank warned that allowing stablecoin issuers to offer rewards or yield on customer balances would enable crypto firms to compete with traditional deposits without having to meet the same capital and regulatory requirements, and that this could lead to rapid withdrawals during times of market stress.
• JPMorgan's CEO, Jamie Dimon, has emerged as one of the banking industry's most vocal critics of stablecoin yield, pledging to fight the issue "down to the wire" and stating that "the banks will not accept it that way".