JPMorgan warns fast-tracked US crypto bill may leave gaps

US crypto rules could move forward within weeks, but JPMorgan is warning investors that a rushed framework may leave holes in market oversight. The Senate is pushing toward a July vote on the Digital Asset Market Clarity Act, which would split oversight between the SEC and CFTC, yet several disputed issues still sit in the way.

In a Monday post, JPMorgan executives Umar Farooq and Peter Muriungi argued that digital assets should be regulated by function, not by whether they use blockchain. Their point is simple: if a token acts like a security, disclosure, custody, and market integrity rules should still apply. If a decentralized platform works like a broker or exchange, it should face similar obligations.

The bank put extra focus on stablecoins and tokenized money. It said these products may improve payments and cross-border settlement, but warned that rewards, cashback, or yield-like features could make them behave more like shadow banking products without the capital, liquidity, supervision, and consumer protections tied to bank deposits.

JPMorgan also said lawmakers should avoid exemptions that weaken anti-money laundering and law enforcement tools. The timing matters. Senate leaders want action before the August recess, but unresolved ethics amendments, procedural hurdles, and a tight House calendar have already lowered expectations for the bill’s path in 2026.