JPMorgan warns that stablecoins may become regulatory arbitrage tools and need to be included in bank level regulatory frameworks Odaily Planet Daily News: JPMorgan CFO Jeremy Barnum stated during the earnings call that if regulatory rules are not aligned with traditional bank deposits, stablecoins may evolve into a "regulatory arbitrage" tool. It points out that some stablecoin models already have deposit like characteristics, such as providing incentives similar to returns, but are not constrained by banking regulatory requirements such as capital, liquidity, and consumer protection, which may create an unfair competitive environment. If the same product is not equally regulated, it will open up arbitrage space, "Barnum said. Currently, the legislative level in the United States is promoting a regulatory framework for cryptocurrencies, including the Clarity Act, to clarify the regulatory division between the America Securities and Exchange Commission and the Commodity Futures Trading Commission, and to regulate the development of the stablecoin market. In addition, whether to allow stablecoins to distribute reserve income to users has become a controversial topic. Cryptocurrency companies, including Coinbase, support "interest bearing stablecoins", while banks believe that this move will bring them closer to deposit products, but lack corresponding regulatory constraints. JPMorgan Chase expressed support for regulatory clarity, but emphasized that "regulatory consistency" takes precedence over speed. At the same time, the bank is advancing its product layout, including JPM Coin and tokenized deposits, through its blockchain division Kinexys to modernize its payment system.