JPMorgan Executives Oppose Yield-Bearing Stablecoins in the U.S.

JPMorgan executives Umar Farooq and Peter Muriungi said yield-bearing stablecoins should not be allowed in the U.S., arguing that rewards tied to stablecoins could create consumer confusion and introduce additional risks. According to NS3.AI, the executives said stablecoin rewards could lead to destabilizing shifts of funds during periods of market stress. Separately, Galaxy Research lowered its estimated odds of the 2026 Clarity Act passing to 50%, citing timing issues and constraints related to the Senate calendar.