JPMorgan backs U.S. crypto bill while warning stablecoin yield incentives could mimic shadow banking

JPMorgan Chase said it supports a U.S. cryptocurrency regulatory framework making its way through Congress, urging lawmakers to provide clarity while placing safeguards at the center of the legislation. The bank’s comments were reported as the Senate faces an August deadline for negotiations on the measure ^{[1] [2]}.

JPMorgan also warned that stablecoin-related incentives and yield products could increase risks similar to “shadow banking,” and said stablecoins that function like bank deposits should not be able to operate outside capital, liquidity, and consumer protection requirements. The bank argued that the rules should close gaps rather than create new ones, and emphasized preserving anti-money-laundering and enforcement tools ^{[3] [4]}.

Overall, JPMorgan’s position pairs support for digital-asset regulation with repeated warnings that poorly structured rules—particularly around stablecoins—could undermine protections in traditional banking ^{[5] [4]}.