JPMorgan Chase Warns Yield-Bearing Stablecoins May Evolve Into 'Shadow Banking,' Calls for Stricter Regulation

According to The Block, on June 30, JPMorgan Chase executives Umar Farooq and Peter Muriungi called for the U.S. to establish a comprehensive digital asset regulatory framework. They warned that if stablecoins are permitted to offer yields, the innovation could slide into "shadow banking" territory. The executives emphasized that stablecoins should comply with the same regulatory standards as traditional deposit products and include anti-money laundering safeguards to mitigate consumer confusion and bank run risks.
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