JPMorgan Chase CFO Jeremy Barnum has warned that stablecoins may become a form of regulatory arbitrage if new rules fail to align them with traditional banking standards. The issue is not a technology shift but a question of oversight, with some models potentially replicate bank-like products while avoiding the safeguards applied to deposits, including interest payments and customer protections. The proposed Clarity Act aims to clarify how crypto markets are regulated by various regulators and is part of efforts to establish clearer rules for stablecoins and related products. Some crypto firms, including some like Coinbase (COIN), have pushed for the ability to pass interest earned on reserve assets to coin holders, arguing this would make them more useful as savings tools. However, banks argue that yield-bearing stablecoins resemble deposits without the same capital, liquidity and consumer protection requirements.