JPMorgan has called for comprehensive digital asset legislation in the US, arguing that regulatory clarity has become essential as tokenization, the process of representing ownership of an asset as a digital token on a blockchain, and programmable money move from experimentation into the core of financial markets.
JPMorgan Pushes for Federal Digital Asset Rules as Tokenization Goes Mainstream
30 June 2026 - 15:00 CEST
By Sandmark staff
In a 29 Jun policy paper, Umar Farooq, JPMorgan's global co-head of payments, and Peter Muriungi, the bank's chief executive for digital assets and blockchain solutions, wrote that technologies such as tokenization, programmable money and digital assets could make payments more efficient, improve capital markets and unlock broader financial innovation. They argued, however, that innovation must be accompanied by consistent rules, strong consumer protections and safeguards against illicit finance.
"Regulatory clarity matters only if paired with durable safeguards," Farooq and Muriungi wrote, warning that rules with gaps or loopholes could push activity into lightly supervised channels.
The intervention comes at a pivotal moment for US crypto policy. Congress is running short of time to pass the CLARITY Act, legislation that would establish a federal framework for digital assets by defining regulatory responsibilities and setting rules for crypto market participants.
Regulation catches up with infrastructure
JPMorgan's position reflects a broader shift already underway across Wall Street. While policymakers continue to debate the legal framework, major financial institutions have steadily expanded tokenization initiatives, digital settlement infrastructure and blockchain-based cash management products.
JPMorgan itself has been among the industry's most active participants. Farooq and Muriungi pointed to Kinexys, the bank's blockchain platform, which has launched JPM Coin, a deposit token designed for near-instant settlement for institutional clients. Earlier this year, the bank also launched a second tokenized money market fund that issues blockchain-based tokens representing shares on Ethereum through Kinexys, targeting institutions seeking blockchain-native access to Treasury-backed liquidity.
It has also joined other major US lenders in exploring a shared tokenized deposit network designed to enable around-the-clock settlement on blockchain infrastructure, a project widely viewed as the banking sector's response to the rapid growth of stablecoins.
Outside banking, tokenization is gathering pace across capital markets. Infrastructure provider Securitize is preparing to list on the New York Stock Exchange after raising $400mn, while firms including BlackRock, Apollo and KKR continue to expand tokenized investment products, a sign that blockchain-based securities are moving beyond pilot projects into mainstream finance.
Tokenization reshaping finance
JPMorgan's argument also aligns with a broader international debate over how digital assets should be integrated into the financial system.
In its 2026 Annual Economic Report, the Bank for International Settlements (BIS) said tokenization and programmable financial infrastructure could significantly improve payments and financial markets if developed within trusted regulatory frameworks anchored by commercial banks and central bank money, rather than relying solely on privately issued stablecoins. The BIS argued that innovation should strengthen the existing monetary system while preserving financial stability and public trust.
Farooq and Muriungi similarly said the goal should not be deregulation but regulatory certainty, with financial institutions, fintech firms and crypto-native companies competing under clear, technology-neutral rules.
JPMorgan's own answer is already taking shape: a tokenization platform, a deposit token and a seat at the table when Washington decides who writes the rules.
