JPMorgan CFO Labels Stablecoin Yields ‘Parallel Banking’; Thailand Targets USDT
JPMorgan CFO Jeremy Barnum warns of a ‘dangerous’ parallel banking system as the Senate debates stablecoin yields, while Thailand’s Central Bank clamps down on USDT ‘grey money’ flows.
The walls are closing in on unregulated crypto banking features from two directions today. In New York, JPMorgan CFO Jeremy Barnum utilized the bank’s Q4 earnings call to launch a direct attack on stablecoin yield products, calling them a “dangerous” parallel banking system. Simultaneously, the Bank of Thailand initiated a targeted monitoring framework for USDT, citing money laundering concerns.
The ‘Parallel System’ Threat
Barnum did not mince words. Speaking to analysts regarding the Senate’s pending “CLARITY Act,” he explicitly targeted crypto intermediaries that pass yield to customers, a practice central to the business models of exchanges like Coinbase.
“The creation of a parallel banking system that has all the features of banking, including something that looks a lot like a deposit that pays interest, without the associated prudential safeguards… is an obviously dangerous and undesirable thing.”
This is not an abstract complaint. It is a strategic endorsement of the banking lobby’s push to ban non-banks from offering rewards on stablecoins. For the crypto sector, the stakes are tangible: Coinbase generated approximately $247 million in stablecoin revenue in Q4 alone. A legislative ban on passing yield to users would decapitate a critical incentive layer for holding USDC over fiat.
Thailand’s ‘Grey Money’ Dragnet
While Wall Street fights over yield, Bangkok is squeezing the rails. The Bank of Thailand (BOT) Governor, Vitai Ratanakorn, signaled that USDT is now under a strict monitoring framework to curb “grey money” flows.
The central bank’s internal data revealed a discrepancy that forced their hand: 40% of USDT sellers on domestic platforms are foreigners trading in violation of local compliance standards. Unlike a blanket ban, this move integrates stablecoin surveillance with the country’s existing anti-money laundering (AML) controls for gold and cash.
Despite the regulatory pincers, the market shrugged. Bitcoin held the line at $90,586 (+0.17%), while Ethereum ticked up to $3,111 (+0.88%). The disconnect between price action and regulatory tightening suggests the market has either priced in the scrutiny or remains indifferent to institutional hurdles until enforcement actions actually begin.
