Key facts
- JPMorgan supports U.S. digital asset legislation.
- The bank highlighted the importance of strong oversight and safeguards.
- JPMorgan warned of potential shadow-banking risks and financial instability without proper regulation.
- The U.S. Senate is expected to consider the bill by August.
JPMorgan has publicly backed proposed U.S. legislation concerning digital assets, while simultaneously issuing a warning about the necessity of robust oversight. The financial institution urged Congress to ensure that any new laws include strong safeguards to prevent potential risks to financial stability. Specifically, JPMorgan cautioned that a lack of adequate regulation could foster shadow-banking activities within the cryptocurrency space. This stance comes as the U.S. Senate is reportedly working towards a deadline in August to consider the bill.