JPMorgan warns a ‘parallel banking system’ is emerging—and it could put trillions in deposits at risk

JPMorgan CFO Jeremy Barnum cautioned that stablecoins, which offer interest, could create a 'parallel banking system' lacking essential regulatory protections. He highlighted that up to $6.6 trillion in bank deposits could be at risk if lawmakers don't address this loophole.

As stablecoins gain traction, regulators face pressure to ensure these deposit-like products have similar safeguards. The absence of such protections could lead to systemic risks for consumers and the financial