Stablecoins Under Pressure After J. P. Morgan Account Closures

The stablecoin startups face new pressure, this being after J.P. Morgan terminated accounts related to this industry. This was catalyzed by activities that were linked to regions under sanctions, low identity verification, and increasing chargebacks that result from fast account opening. The banks can no longer ignore such operational issues.

This can be ascribed to overall banking prudence as more stringent AML/sanctions regulations are enacted, with the 2025 GENIUS Act increasing reporting and reserve requirements for operating stablecoins. As such, entities lacking effective compliance measures are subject to tougher scrutiny and withdrawal of banking services.

However, J. P. Morgan remains committed to working with digital asset companies that are compliant but is being tough on partners who have compliance issues. The issue highlights the growing need for stablecoin startups to implement robust control measures in relation to cryptocurrency transactions and banking relationships in a high-risk environment that is constantly changing.

#JPMorgan