JPMorgan backs bank-style stablecoin rules
- JPMorgan Chase said it supports a US digital asset framework if stablecoin issuers follow the same capital, liquidity and consumer protection rules as banks.
- The proposal could increase compliance requirements for stablecoin issuers if lawmakers adopt the bank's recommendations.
- JPMorgan said tokenisation and programmable money can improve payments, provided existing regulatory safeguards remain in place.
JPMorgan Chase said it supports a new US digital asset framework, provided stablecoin issuers comply with the same capital, liquidity and consumer protection standards as traditional banks.
The statement comes as the US Senate considers cryptocurrency legislation, with banks seeking changes to stablecoin provisions before a final vote.
JPMorgan said tokenisation and programmable money could improve domestic and cross-border payments, but only if supported by appropriate regulatory safeguards.
The bank argued that stablecoins functioning like bank deposits should meet equivalent banking standards, while anti-money laundering rules and existing enforcement powers should remain unchanged, and it recently completed a live tokenised US Treasury settlement with Ondo Finance using blockchain technology.
The bank stated that aligning stablecoin regulation with banking rules would reduce regulatory gaps, while the outcome now depends on Senate negotiations, and following the announcement JPMorgan's share price was unchanged at US$---.
The proposal would affect issuers including Tether (CRYPTO:USDT) and Circle, with smaller providers potentially facing higher compliance costs if lawmakers adopt the bank's preferred framework.
The debate continues as lawmakers consider whether stablecoins should operate under dedicated regulatory licences or existing banking laws, while blockchain networks including Ethereum (CRYPTO:ETH), BNB (CRYPTO:BNB), Polygon (CRYPTO:POL), Solana (CRYPTO:SOL), Cosmos (CRYPTO:ATOM) and Arbitrum (CRYPTO:ARB) continue expanding developer activity.
At the time of reporting, Ethereum price was $1,611.00.
