TechFlow News, April 14: According to a CoinDesk report, Jeremy Barnum, Chief Financial Officer of JPMorgan, stated during the company’s first-quarter earnings call that stablecoins—offering products similar to those of banks but lacking equivalent regulatory oversight and consumer protections afforded to bank deposits—could evolve into tools for “regulatory arbitrage.” He emphasized that if stablecoin issuers permit users to earn interest on reserve assets, this would create business activities functionally akin to banking yet without corresponding capital, liquidity, or consumer protection requirements, resulting in unfair competition.
Barnum noted that JPMorgan supports establishing a clearer U.S. regulatory framework for digital assets and related yield-bearing products, though he stressed that consistency is more important than speed. Currently, JPMorgan is modernizing its payments business through its blockchain division, Kinexys, which has launched JPM Coin and tokenized deposits. Data shows JPMorgan’s net income for the first quarter rose 13% year-on-year to $16.49 billion.
