{"id":93122,"date":"2026-01-14T12:35:14","date_gmt":"2026-01-14T09:35:14","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=93122"},"modified":"2026-01-14T12:40:19","modified_gmt":"2026-01-14T09:40:19","slug":"jpmorgan-opposes-stablecoin-based-parallel-banking-system","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/jpmorgan-opposes-stablecoin-based-parallel-banking-system\/","title":{"rendered":"JPMorgan Opposes Stablecoin-Based &#8216;Parallel Banking System&#8217;"},"content":{"rendered":"<p>JPMorgan Chase&#8217;s Chief Financial Officer Jeremy Barnum <a href=\"https:\/\/www.marketbeat.com\/instant-alerts\/jpmorgan-chase-co-q4-earnings-call-highlights-2026-01-13\/\">warned<\/a> about the dangers of <a href=\"https:\/\/forklog.com\/en\/news\/what-are-stablecoins\">stablecoins<\/a> that offer interest income.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cCreating a parallel banking system that has all the functions of banking services, including something very similar to an interest-bearing deposit, but without the prudential measures developed over centuries of banking regulation, is obviously a dangerous and undesirable thing,\u201d he said during a fourth-quarter earnings call.<\/em><\/p>\n<\/blockquote>\n<p>The topic was raised by Evercore analyst Glenn Schorr, who was interested in JPMorgan&#8217;s stance on stablecoins amid lobbying efforts by the American Bankers Association and legislative debates in the U.S. Congress.<\/p>\n<p>Barnum responded that the bank&#8217;s position aligns with the <a href=\"https:\/\/forklog.com\/en\/news\/donald-trump-enacts-stablecoin-legislation\">Genius Act<\/a>, aimed at creating transparent rules for stablecoin issuers. However, the financial institution is \u201ccategorically against\u201d the formation of a parallel banking system operating outside the protective measures being developed.<\/p>\n<p>Legislators are also focusing on the Clarity Act, which aims to delineate regulatory authorities.<\/p>\n<p>According to the <a href=\"https:\/\/www.banking.senate.gov\/imo\/media\/doc\/market_structure_draft.pdf\">latest draft<\/a> of the bill, digital asset service providers will be prohibited from paying interest or any income \u201csimply for holding\u201d a stablecoin. This is intended to prevent stablecoins from becoming unregulated equivalents of bank deposits.<\/p>\n<p>However, the bill allows for rewards for active participation in the ecosystem. Exceptions are made for income from:<\/p>\n<ul class=\"wp-block-list\">\n<li>providing liquidity;<\/li>\n<li>participating in protocol governance;<\/li>\n<li><a href=\"https:\/\/forklog.com\/en\/news\/what-is-staking-and-how-to-make-money-from-it\">staking<\/a>;<\/li>\n<li>other activities that ensure network functionality.<\/li>\n<\/ul>\n<p>Back in October 2025, Multicoin Capital co-founder Tushar Jain <a href=\"https:\/\/forklog.com\/en\/news\/us-banks-risk-6-6trn-deposit-flight-under-the-genius-act\">stated<\/a> that the Genius Act would trigger a withdrawal of deposits from traditional banks to more profitable stablecoins.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>JPMorgan Chase&#8217;s CFO Jeremy Barnum warned about the dangers of stablecoins that offer interest income.<\/p>\n","protected":false},"author":1,"featured_media":93123,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"JPMorgan's CFO warns of risks in stablecoin-based banking.","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1138,36,807,26],"class_list":["post-93122","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-opinions","tag-regulation","tag-stablecoins","tag-usa"],"aioseo_notices":[],"amp_enabled":true,"views":"139","promo_type":"1","layout_type":"1","short_excerpt":"JPMorgan's CFO warns of risks in stablecoin-based banking.","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/93122","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=93122"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/93122\/revisions"}],"predecessor-version":[{"id":93124,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/93122\/revisions\/93124"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/93123"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=93122"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=93122"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=93122"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}