JPMorgan backs the CLARITY Act while calling for tighter stablecoin controls and investor safeguards to prevent risk from yield products and deposit shifts.
Alpha Score of 55 reflects moderate overall profile with strong momentum, poor value, moderate quality, moderate sentiment.
JPMorgan Chase publicly supported the U.S. CLARITY Act on Tuesday. In a joint opinion piece, two of its digital-asset executives said the bill's push for regulatory clarity is necessary for crypto to grow. They also argued the legislation should go further on stablecoin yield, anti-money laundering controls, and investor protections.
Umar Farooq, global co-head of JPMorgan Payments, and Peter Muriungi, CEO of Digital Assets and Blockchain Solutions, wrote that tokenization and programmable money could speed payments, reduce settlement times, and improve cross-border transactions. They endorsed the CLARITY Act's framework for distinguishing securities from commodities.
The executives warned that products offering rewards or yield without bank-level capital, liquidity, and consumer protections could mislead users. That risk could trigger panic withdrawals during market stress, they said. Large deposit shifts from banks into stablecoins could also squeeze traditional lending across the economy.
Digital assets that function like securities should follow the same disclosure, custody, and investor protection rules as traditional products, Farooq and Muriungi wrote. Decentralized platforms operating like brokers or exchanges should meet comparable standards. JPMorgan called for stronger AML rules, arguing that broad exemptions for some crypto infrastructure would make it harder to track illicit financial activity.
The bank's lobbying push comes as lawmakers negotiate the bill ahead of the Senate's August deadline. Key issues remain unresolved: stablecoin yield, AML provisions, and ethics rules.
JPMorgan continues expanding its blockchain business despite calling for tighter rules. Its Kinexys payments platform recently added five new currencies, bringing the total to eight. The platform has processed more than $4 trillion in transactions, with daily volumes exceeding $7 billion. The bank is also developing JPM Coin, a blockchain-based deposit token for near-instant, 24/7 settlement within a regulated banking environment.
JPMorgan's Alpha Score sits at 56/100, labeled Moderate. The stock traded at $329.39, up 0.10% on the session.
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