JPMorgan Chase expressed support for the United States establishing a regulatory framework for digital assets, but warned that new rules should address regulatory gaps rather than create new risks. The bank believes that tokenization and programmable money have the potential to improve payment efficiency, shorten settlement times, and enhance cross-border capital flows, provided that appropriate consumer protections and regulatory measures are in place. JPMorgan argues that on-chain assets with securities characteristics should still be subject to securities laws, and decentralized trading platforms should also adhere to the same market integrity and disclosure standards as traditional exchanges and brokers. Additionally, the bank expressed concerns about stablecoin yield and reward mechanisms, suggesting that products resembling bank deposits should not circumvent capital, liquidity, and consumer protection rules. It also called for digital asset legislation to preserve anti-money laundering and enforcement tools, avoiding regulatory blind spots for illicit financing and market manipulation. (CoinDesk)