JPMorgan executives are not backing down on the belief that yield-bearing stablecoins should not be permitted in the U.S. via wide-ranging crypto market structure legislation under discussion in Congress.
On Monday, Global co-Head of JP Morgan Payments Umar Farooq and CEO of Digital Assets and Blockchain Solutions Peter Muriungi published a note calling for a comprehensive framework for digital assets in the United States without naming the Clarity Act directly.
"Getting the framework right will enable responsible innovation by closing loopholes, aligning oversight with economic reality, and preserving the protections that underpin financial stability," Farooq and Muriungi wrote.
The Clarity Act has become shorthand for the legislative efforts to establish a comprehensive regulatory framework for crypto by clarifying jurisdiction between the Commodity Futures Trading Commission and the Securities and Exchange Commission, while also setting rules for market participants, consumer protections, and market integrity.
This has become increasingly important as U.S. institutions continue to expand into tokenization. In their post, Farooq and Muriungi note that "tokenization and programmable money" offer key innovations for global payments and instant, 24/7 settlement.
