JPMorgan Executives Warn Yield Stablecoins Could Drift Into Shadow Banking

JPMorgan executives Umar Farooq and Peter Muriungi argued that yield-bearing stablecoins should not be permitted in the U.S. They said stablecoin rewards could create consumer confusion, run risk, and destabilizing fund shifts during stress. Galaxy Research cut its 2026 Clarity Act passage odds to 50%, citing timing and Senate calendar constraints.
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