JPMorgan warns rushed US crypto rules could create market loopholes as Senate races toward July CLARITY Act vote
JPMorgan warned Congress not to rush crypto rules in ways that create oversight gaps. The bank argued digital assets should be regulated by function, not technology: tokenized products that act like securities should face disclosure, custody, and market-integrity rules, and platforms that function like brokers or exchanges should have similar obligations. It also cautioned that stablecoins and tokenized money could become shadow banking if rewards or yield-like incentives are allowed without bank-style capital, liquidity, and consumer protections. JPMorgan said anti-money-laundering and enforcement tools should be preserved to avoid illicit-finance blind spots. The warning comes as Senate leaders try to move the CLARITY Act, which would split crypto oversight between the SEC and CFTC. The bill faces a tight summer deadline and a major hurdle over ethics amendments targeting crypto business activity by public officials and their families, including the president. Despite committee approval, vote math remains uncertain.
