JPMorgan Chase & Co.
(NYSE:JPM) stated on Monday that it supports a regulatory framework for cryptocurrencies but warned the rules could carry risks, especially for stablecoins and yield-producing products.
JPMorgan Takes Aim At Stablecoin Rewards In a blog post published by Umar Farooq, global co-head of JPMorgan Payments, and Peter Muriungi, CEO of Digital Assets and Blockchain Solutions, the company said that the U.S. should tread carefully while setting up a framework for digital assets.
"Financial innovation that outpaces regulation and risk management can lead to instability that hinders progress," the blog read.
"That’s why regulatory clarity matters only if paired with durable safeguards." The bank argued that payments innovation—such as stablecoins—could shift into "shadow-banking" activities, offering yield-like incentives, or balance-holding arrangements without the necessary safeguards.
