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According to BBX data, the global competition between crypto compliance infrastructure and traditional financial capital entered a heated stage yesterday, with brokerage giants and old money on Wall Street clashing over the advancement of legislation. The core dynamics are as follows:Coinbase receives CFTC 16-page no-action letter authorization: Coinbase Global, Inc. (NASDAQ: $COIN) officially announced that the Commodity Futures Trading Commission (CFTC) has issued a 16-page "no-action letter" to its subsidiary CFM. This authorizes CFM to officially offer perpetual contracts and options for "digital commodities" such as BTC, ETH, SOL, and DOGE to U.S. institutional clients through the foreign exchange Deribit FZE, which it previously acquired for $2.9 billion. The letter also allows clients to directly transfer digital assets and stablecoins to Deribit FZE as collateral.Dimon publicly declares war on the CLARITY Act: Jamie Dimon, CEO of JPMorgan Chase & Co. (NYSE: $JPM), publicly expressed strong opposition to the CLARITY Act currently advancing in the Senate during a Fox Business program. Dimon warned that the act allows crypto companies to pay users "yield rewards" in stablecoins, effectively bypassing the capital and compliance standards of traditional banking. He formed a coalition with the American Bankers Association, publicly committing to "fight to the end" against this legislation.

According to Forbes, JPMorgan CEO Jamie Dimon warned about the U.S. cryptocurrency market structure bill, the CLARITY Act, stating that if stablecoin issuers are allowed to provide returns to users in a manner similar to bank deposit interest, the related model could eventually collapse.Dimon stated that the bill allows cryptocurrency companies to offer returns similar to deposit interest through stablecoin accounts without the corresponding regulatory protections, and the banking industry would not accept such arrangements. He said, "I am not worried about stablecoins themselves, but if this happens, I will not participate, and it will ultimately collapse."The CLARITY Act aims to clarify the regulatory framework for the U.S. cryptocurrency industry and delineate the responsibilities of regulatory agencies. Previously, Patrick Witt, Executive Director of the U.S. Digital Asset Advisory Committee, stated that the Trump administration planned to push for the bill's passage before July 4. However, Polymarket data shows that the probability of the CLARITY Act passing by 2026 has fallen from nearly 70% to just above 50%.

According to CoinDesk, JPMorgan analyst Nikolaos Panigirtzoglou and others stated that as signs of easing tensions in the Middle East emerge, investors are gradually withdrawing from the Bitcoin and gold markets. The "devaluation trade" that had driven demand for both is losing momentum.In the past two weeks, both Bitcoin and gold-related ETFs have seen significant outflows, and institutional positions in the CME futures market have also weakened simultaneously. This trend indicates that investors are retreating from the macro hedging trades that had become popular due to inflation concerns and global instability, and it is not that Bitcoin funds are shifting to gold, but rather that both asset classes are facing a simultaneous decline in demand. Since the Iran conflict, Bitcoin has been a major representation of the "devaluation trade."

According to Jinshi reports, sources say that OpenAI has discussed its upcoming IPO with Citigroup, JPMorgan Chase, and others. The sources indicate that Citigroup and JPMorgan Chase may join Goldman Sachs and Morgan Stanley in preparing for the listing.The sources state that discussions with Citigroup and JPMorgan Chase do not guarantee that they will ultimately participate in this IPO. Other investment banks may also eventually get involved.

According to Coindesk, JPMorgan CEO Jamie Dimon has once again harshly criticized Coinbase CEO Brian Armstrong and warned that if lawmakers do not address traditional banks' concerns about stablecoin regulation, the latest version of the Digital Asset Market Clarity Act may ultimately fail. Dimon believes that the bill would allow stablecoin issuers to effectively pay interest on deposits without bank-like protections and predicts that if adopted as is, the bill "will ultimately fail."

J.P. Morgan analysts, including Nikolaos Panigirtzoglou, stated that as signs of easing tensions in the Middle East emerge, investors are gradually withdrawing from the Bitcoin and gold markets. The "devaluation trade" that previously drove demand for both is losing momentum.In the past two weeks, both Bitcoin and gold-related ETFs have seen significant capital outflows, and institutional positions in the CME futures market have also weakened concurrently. This trend indicates that investors are retreating from the macro hedging trades that became popular due to inflation concerns and global instability, and it is not a case of Bitcoin funds shifting to gold; rather, both asset classes are facing a simultaneous decline in demand. Since the Iran conflict, Bitcoin has been a major representation of the "devaluation trade."

According to Wall Street Journal reports, JPMorgan CEO Dimon stated that JPMorgan may issue stablecoins in the future.

JPMorgan's latest report points out that although tokenized money market funds have revenue potential, they still only account for about 5% of the broader "stablecoin system," and the core position of stablecoins in the crypto ecosystem is unlikely to be replaced in the short term.The report states that stablecoins have become the default "cash tool" for trading, collateral, settlement, cross-border payments, and liquidity management, widely used in centralized exchanges and DeFi protocols, while tokenized money market funds are constrained by their securities characteristics, subject to registration, disclosure, and transfer restrictions, resulting in structural regulatory disadvantages.Analysts at JPMorgan, led by Nikolaos Panigirtzoglou, expect that without significant changes in the regulatory environment, the market size of tokenized money market funds is unlikely to exceed 10% to 15% of the overall stablecoin market. Current demand is mainly concentrated among crypto-native investors seeking yield and institutional funds looking to balance on-chain settlement with traditional asset protection.The report also notes that although tokenized funds have advantages such as near real-time settlement, 24/7 transfers, and automated clearing, their growth is still constrained by liquidity, counterparty risk, and regulatory uncertainty. JPMorgan believes that in the absence of regulatory easing, these products will struggle to challenge the infrastructure-level position of stablecoins in the crypto market.

According to BBX data, yesterday the layout of traditional payment institutions in the cryptocurrency infrastructure showed divergence, with institutions having clear differences in their views on ETH and the altcoin sector. The core dynamics are as follows:Mastercard Incorporated (NYSE: $MA) signed an acquisition agreement for the UK stablecoin infrastructure company BVNK on March 17 for a maximum of $1.8 billion (including $300 million in performance-based payments), which directly led Mastercard to abandon its previously pursued strategic investment plan in Zerohash (a privately held company). According to CoinDesk on May 19, Mastercard exited negotiations with Zerohash after the completion of the BVNK acquisition, and Zerohash is currently seeking to initiate a new financing round with a valuation of over $1.5 billion (higher than the $1 billion valuation established during the D-2 round of financing of $104 million in September 2025); the strategic logic behind Mastercard's acquisition of BVNK is that BVNK has a stablecoin payment infrastructure covering over 130 countries and a difficult-to-replicate combination of multi-country payment licenses; Mastercard's Chief Product Officer Jorn Lambert stated that the goal is to integrate stablecoins into the core network of Mastercard Move cross-border payments, rather than treating them as a peripheral experiment.JPMorgan Chase & Co. (NYSE: $JPM) analysts cited by CoinDesk on May 19 released the latest research report indicating that in the current market environment, Ethereum and the broader altcoin sector will continue to lag behind Bitcoin, primarily due to three structural weaknesses: weak network activity, stagnation in DeFi ecosystem growth (Solana's TVL has dropped from a peak of $13.1 billion in 2025 to about $5.5 billion), and limited real-world adoption scenarios; analysts believe that for the altcoin sector to catch up with Bitcoin's performance, a "significant network activity explosion" is a prerequisite, and this condition currently lacks visible short-term catalysts.

JPMorgan analysts pointed out in their latest report that although the overall cryptocurrency market has recovered after the Iran conflict, Ethereum and other altcoins continue to underperform compared to Bitcoin. The analyst team led by Managing Director Nikolaos Panigirtzoglou stated that this trend, which began in 2023, "is unlikely to change unless we see meaningful improvements in network activity, DeFi, and real-world applications."The analysts noted that since the conflict triggered a market sell-off, Bitcoin's recovery in spot ETF fund flows and institutional futures positions has outperformed Ethereum. The spot Bitcoin ETF has recovered about two-thirds of the previous outflows, while the spot Ethereum ETF has only recovered about one-third. CME futures positions also indicate that institutional investors are rebuilding their Bitcoin exposure more aggressively than Ethereum.Regarding the upcoming Ethereum upgrades (Glamsterdam and Hegota), analysts questioned whether they would be sufficient to improve ETH's relative performance. Upgrades over the past three years have primarily reduced Layer 2 transaction costs, which has weakened the Ethereum network's fee generation and token burn mechanisms, leading to an accelerated net supply growth and weakened price support. Whether the new upgrades can generate enough new demand and network activity remains to be seen.For altcoins, analysts believe that since 2023, weak liquidity conditions, low market depth and breadth, limited growth in DeFi activity, and recurring hacking and security incidents have collectively eroded market confidence and hindered the deployment of new capital.

According to The Block, JPMorgan analysts have stated that despite the overall recovery of the cryptocurrency market following the Iran conflict, Ethereum and altcoins continue to underperform Bitcoin. The analysts believe that unless there is a substantial improvement in network activity, DeFi, and real-world applications, this trend that began in 2023 is unlikely to change.The analysts pointed out that the spot Bitcoin ETF has recovered about two-thirds of the previously withdrawn funds, while the spot Ethereum ETF has only recovered about one-third. CME futures positions indicate that institutions are rebuilding their Bitcoin exposure more aggressively than Ethereum, with Bitcoin futures positions nearly fully restored, while Ethereum futures positions remain below previous levels.The analysts also questioned whether the upcoming Ethereum upgrade could effectively boost network activity. They noted that upgrades over the past three years have primarily reduced Layer 2 transaction costs, leading to lower Ethereum network fees, a weakened token burn mechanism, and accelerated net supply growth, which has undermined ETH's price support.Regarding altcoins, the analysts pointed out that poor liquidity, insufficient market depth, limited growth in DeFi activity, and repeated hacking incidents have eroded confidence and hindered the allocation of new capital.

JPMorgan analysts stated that despite the overall recovery of the cryptocurrency market after the Iran conflict, Ethereum and other altcoins continue to underperform Bitcoin. This trend, which has formed since 2023, may be difficult to reverse in the short term unless there is a significant improvement in network activity, DeFi, and real-world applications.The report pointed out that, based on spot ETF fund flows and institutional futures positions, the recovery of Bitcoin is stronger than that of Ethereum. The spot Bitcoin ETF has recovered about two-thirds of the previous outflows, while the spot Ethereum ETF has only recovered about one-third. At the same time, CME futures data shows that institutional investors are more actively rebuilding their exposure to Bitcoin, with Bitcoin futures positions nearly fully restored, while Ethereum futures positions remain below previous levels.JPMorgan believes that the relative weakness of ETH and altcoins against Bitcoin may continue due to the lack of stronger on-chain fundamentals and real-world application support.

According to Cointelegraph, the 13F filing shows that JPMorgan significantly increased its Bitcoin ETF holdings in the first quarter, with its position in the BlackRock iShares Bitcoin Trust (IBIT) rising from approximately 3 million shares to 8.3 million shares, an increase of 174%.In addition, JPMorgan also significantly increased its holdings in other Bitcoin spot ETFs such as Fidelity FBTC and Bitwise BITB, while slightly increasing its position in Strategy (MSTR).Regarding altcoin ETFs, JPMorgan's actions varied: it made its first purchase of the Bitwise Solana Staking ETF (BSOL), increased its holdings in Ethereum-related ETFs, while completely liquidating its XRP ETF.

According to Jinshi News, JPMorgan stated that investor panic is rapidly escalating, and many clients have turned fully bearish on the stock market. Despite the pessimistic market sentiment, JPMorgan's traders still advise clients to remain calm amid market volatility and not to panic.

JPMorgan Chase will launch its second tokenized money market fund based on Ethereum, named OnChain Liquidity-Token Money Market Fund, with the code JLTXX. The fund will primarily invest in U.S. Treasury securities, as well as overnight repurchase agreements collateralized by U.S. Treasury securities or cash, aiming to meet the qualified reserve asset requirements that stablecoin issuers must maintain under the GENIUS Act.JPMorgan Chase stated that the fund's blockchain technology will be managed by its subsidiary Kinexys Digital Assets. Currently, Ethereum is the only on-chain network available to investors, and there is a possibility of expanding to other blockchains in the future. This is also JPMorgan Chase's second tokenized money market fund on Ethereum following the launch of MONY last year. Compared to MONY, which is more focused on institutional on-chain cash management, JLTXX is more directly aimed at the stablecoin reserve asset scenario.

According to Bloomberg, as crypto-native companies like Coinbase continue to lay off employees on a large scale and the industry as a whole is in a downturn, traditional financial institutions such as JPMorgan and BlackRock have recently bucked the trend by posting dozens of digital asset-related positions, becoming a major highlight in the current crypto job market.Analysts point out that having a background in Wall Street has become an important asset for crypto talent to maintain their competitive edge in employment during the industry's downturn.

According to The Block, JPMorgan analysts have stated that Bitcoin is gradually surpassing gold as a currency devaluation hedge tool following the Iran conflict.Analysts led by Managing Director Nikolaos Panigirtzoglou noted that Bitcoin ETFs recorded inflows for the third consecutive month in May, while gold ETFs are still struggling to recover the funds that flowed out during the outbreak of the Iran conflict in March. This indicates that since the conflict began, retail investors are choosing Bitcoin over gold for devaluation hedge trades.The analysts stated that Bitcoin purchases are not limited to retail investors through ETFs. JPMorgan's position proxy indicators based on CME Bitcoin futures and offshore perpetual futures have also reached new highs, indicating that institutional investors are similarly increasing their exposure. The momentum signals for Bitcoin and gold have also rebounded since the conflict began. Investors are also indirectly buying Bitcoin through Strategy, with the company's purchase volume potentially reaching around $30 billion this year if the current pace is maintained.