JPMorgan Chase: Urgent Need for Global Crypto Regulatory Framework to Help Clients Invest in Crypto Assets

A JPMorgan executive said that a globally consistent crypto regulatory framework is urgently needed to allow banks to handle crypto assets on behalf of large clients. A growing number of large institutions, including hedge funds, are interested in investing in and exposure to the crypto asset class.

According to Wells Fargo, cryptocurrencies have entered a "super-adoption phase."

Debbie Toennies, managing director and head of regulatory affairs at JPMorgan Chase & Co, noted that some very large players have asked JPMorgan to hedge their exposure to crypto assets: I do think we need a globally consistent regulatory framework. It is important to find a solution as soon as possible. The Basel Committee on Banking Supervision’s global banking watchdog is reportedly discussing rules for banks to deal with crypto assets.

Last June, the committee proposed dividing cryptoassets into two groups and regulating them based on their market, liquidity, credit and operational risk to banks. However, the final rule is not expected until at least next year.