JPMorgan Urges Stablecoin Regulation Under the GENIUS Act
JPMorgan has escalated its warnings about yield-bearing stablecoins, framing them as a systemic risk to traditional banking. CFO Jeremy Barnum argues these crypto instruments create a shadow banking system that bypasses deposit safeguards while siphoning liquidity from regulated institutions.
The proposed GENIUS Act emerges as a potential regulatory framework to curb financial abuses. This legislative push signals growing institutional anxiety as crypto-native yield products gain traction—a confrontation that may redefine the boundaries between decentralized finance and traditional banking.