JPMorgan Backs US Crypto Rules, Says Safeguards Should Take Priority Over Innovation

JPMorgan backed the U.S. regulatory framework for digital assets, while stressing that risk management and consumer protection should take precedence over industry growth.

CoinDesk reported on June 29 that Umar Farooq, global co-head of JPMorgan Payments, wrote in a blog post that the pending Clarity Act could help mature the traditional banking industry if it closes existing regulatory gaps instead of creating new ones.

Digital assets should not be allowed to bypass the safeguards that apply to traditional finance, he wrote. Innovation without proper oversight can create new risks for consumers and the broader financial system.

Farooq said tokenization and programmable money could speed up payments and improve cross-border transfers. But those benefits can be realized only when regulatory clarity and strong consumer protections are in place, he wrote.

He added that digital assets with the same characteristics as securities should remain subject to existing securities laws even if they are issued on a blockchain. Decentralized platforms that function as exchanges or brokers should also be held to the same standards as traditional financial institutions on market integrity, disclosure and investor protection.