JPMorgan Chase has raised concerns about the potential risks stablecoins pose to the traditional banking system. During its fourth-quarter earnings call, the bank's Chief Financial Officer, Jeremy Barnum, highlighted the dangers of interest-bearing stablecoins that mimic traditional banking without regulatory oversight. While supporting blockchain innovation, JPMorgan emphasized the need for regulatory safeguards to prevent the emergence of a parallel banking system. The bank's stance aligns with ongoing regulatory efforts, such as the GENIUS Act, to establish clear guidelines for stablecoin issuance. U.S. lawmakers are also scrutinizing stablecoin rewards, with proposals to prohibit interest payments on stablecoin holdings to prevent them from functioning as unregulated bank deposits. This regulatory focus aims to balance innovation with financial stability as digital assets gain mainstream adoption.