JPMorgan executive comments on "Interest-bearing Stablecoins": Firmly oppose the emergence of parallel banking systems outside the existing regulatory framework

On January 14, during JPMorgan’s Q4 earnings call on Tuesday, stablecoins became a topic of discussion. The bank’s executives expressed support for blockchain technology while warning that certain stablecoin designs could threaten the regulated banking system. JPMorgan CFO Jeremy Barnum stated that the bank’s stance aligns with the purpose of the , which aims to establish regulatory safeguards for stablecoin issuance. Barnum warned against creating a parallel banking system that mimics traditional banking but lacks the prudential safeguards developed over hundreds of years of banking regulation, such as deposit interest payments. “Creating a parallel banking system with all the features of banking—including seemingly paying interest on deposits—without the relevant prudential safeguards developed over centuries of banking regulation is clearly a dangerous and undesirable practice,” he said. Barnum added that while JPMorgan welcomes competition and innovation, it firmly opposes the emergence of parallel banking systems outside the existing regulatory protection framework. BlockBeats Note: Currently, the most core and intense point of contention in the latest advancement of the US cryptocurrency sector’s @E5@ (Market Structure Act) revolves around stablecoins, especially regarding whether/how they can provide yields/rewards.