Svmuu News: Jeremy Barnum, Chief Financial Officer of JPMorgan Chase, stated during the company’s fourth-quarter earnings call that JPMorgan Chase supports blockchain technology and financial innovation, but maintains a clear sense of caution regarding the design of certain yield-generating stablecoins. He believes that, in the absence of appropriate prudential regulation, these stablecoins could replicate the functions of traditional banks, thereby creating a “dangerous and unwelcome parallel banking system.”Barnum noted that the bank’s position aligns with the regulatory intent of the GENIUS Act, which aims to establish clear boundaries for stablecoin issuance.He emphasized that if stablecoins possess characteristics similar to “interest-bearing deposits” yet do not bear the capital, risk management, and compliance requirements that have evolved over centuries within the banking regulatory system, they will pose a risk to the existing regulated financial system. Although the JPMorgan Chase welcomes competition and innovation, it does not support “shadow banking” structures that circumvent existing regulatory frameworks.At the legislative level, the issue of stablecoin “yields” has become one of the core points of contention in the U.S. Congress’s deliberations on the Digital Asset Market Clarity Act.The latest draft revision indicates that lawmakers are inclined to prohibit digital asset service providers from paying users interest or returns solely for holding stablecoins, to prevent such arrangements from functioning as bank deposits; at the same time, the draft still leaves room for incentive mechanisms related to network activities such as liquidity provision, governance participation, and staking. (Cointelegraph)