JPMorgan Backs Crypto Clarity Bill, Warns on Stablecoin Yields

JPMorgan analysts endorsed the Digital Asset Market Clarity Act on June 4. The bill would split oversight of digital assets between the SEC and CFTC, they said. Stablecoin yield risks to bank deposits drew a separate warning.

The bill, H.R. 3633, aims to end years of conflicting jurisdiction between the two agencies. Right now both claim authority, often with different interpretations. Companies learn the boundaries only after an enforcement action is filed, critics say.

The Senate Banking Committee advanced the bill on May 14 on a 15-9 vote. No floor vote is scheduled. The upcoming US midterm elections shrink the legislative calendar. JPMorgan's analysts warned on June 4 that the window is closing.

Stablecoins are dollar-pegged tokens that increasingly offer yield to holders. If they can pay depositors competitive returns without a banking charter, capital could drain from traditional deposits into digital alternatives. Jamie Dimon has said the bill must address this.

JPMorgan is the largest US bank by assets. It runs the Kinexys blockchain platform, which processes tokenized deposits and cross-border payments. The bank's stance, supportive of the bill and cautious on stablecoin yields, reflects a tension on Wall Street. Firms want clear crypto regulation to expand markets. They also need to protect deposit businesses.

Passage would reduce regulatory ambiguity for exchanges and asset managers, a shift that could accelerate institutional capital flows. A stall leaves the current enforcement-driven regime in place.

The House panel has scheduled a field hearing on the bill for later this month. Lawmakers return from recess on June 20. No floor vote is scheduled.