In an analytical column published June 29, JPMorgan backed efforts by US lawmakers to shape unified regulation for digital assets. At the same time, the bank notes that the absence of robust protective rules could push risks out of the traditional financial system and into the crypto market, where they could grow even larger.
“Blockchain's potential — including tokenization and faster settlement — can only be realized with proper oversight in place,” JPMorgan stated.
The bank points out that the current fragmentation of US regulation reduces market predictability and complicates the work of market participants.
“Different regulators apply inconsistent approaches, which means companies face different requirements and interpretations of the rules,” the article says.
JPMorgan advocates for a more cohesive regulatory framework that would narrow the gap between regulators and smooth the path for launching products in the digital asset market.
Separately, the bank highlights the role of the US as a key jurisdiction.
“Decisions made by US authorities set the benchmarks for international regulation and directly shape the development of the global crypto market,” JPMorgan says in the publication.
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