As the United States works to create a framework for digital assets, lawmakers must ensure it includes permanent safeguards, according to a new report condition Posted on Monday (June 29) by JPMorgan Chase.
The article was written by him Omar FaroukGlobal Co-Head of JP Morgan Payments, and Peter MurionjiCEO of Digital Assets and Blockchain Solutions at JPMorgan Chase.
While digital assets can reduce friction in payments, shorten settlement cycles, unlock efficiencies, and modernize financial infrastructure, any loopholes or gaps in collateral surrounding them could push them into lightly supervised channels and weaken long-term protections, the authors wrote.
In the market structure and payments structure, investors and consumers will likely expect digital asset-backed offerings to be subject to the same rules and offer the same guarantees as traditional methods, the authors wrote.
“A framework that fails to close these gaps risks recreating the very vulnerabilities that financial regulation was designed to prevent,” Farooq and Murionji wrote.
JPMorgan Chase has demonstrated that digital asset capabilities can operate in a risk-managed and supervised environment, they wrote, pointing to the bank’s blockchain business, Kinexis from JP Morganand its deposit code, GBM coin.
Reflecting on lawmakers’ efforts to agree on a framework for digital assets, Farooq and Murionji wrote: “Getting the framework right will enable responsible innovation by closing loopholes, aligning oversight with economic reality, and preserving the protections that underpin financial stability. The goal should not just be to move quickly, but to build a system that Americans can trust — one that allows innovation to flourish without endangering consumers, markets, or the broader economy.”
JPMorgan’s article comes at a time when Congress is trying to reach an agreement on the Clarity Act Cryptocurrency legislation.
It was reported on Thursday (June 25) that with time running out to reach agreement on the bill, senators remain divided on issues such as potential restrictions on President Donald Trump’s ability to profit from digital assets, and how to fill empty seats in the Senate. Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC), How to Control Yield About stablecoins and how to combat illicit finance.
JPMorgan Chase CEO Jamie Damon He said on May 29 that if cryptocurrency companies are going to take deposits like a bank, they should be regulated like a bank and follow the same. rules As a bank.
