JPMorgan has warned that weak digital asset rules could allow stablecoins and decentralized platforms to operate like banks, brokers and exchanges without facing the same regulatory requirements.
In a statement published Monday, JPMorgan executives Umar Farooq and Peter Muriungi said the United States must close regulatory loopholes as digital assets move deeper into payments, trading and settlement.
The executives argued that blockchain technology should not change how a financial product is regulated.
Assets that behave like securities should remain subject to disclosure, custody and market integrity requirements, while decentralized platforms performing broker or exchange functions should face comparable obligations.
“Labeling matters less than substance,” Farooq and Muriungi wrote.
