At an SEC Investor Advisory Committee meeting, finance and crypto leaders outlined differing views on how tokenization and decentralized finance should be regulated as adoption accelerates. Panelist Samara Cohen of BlackRock noted the value of the discussion in surfacing "distinct paths and perspectives," underscoring that multiple regulatory approaches may be needed. The session followed submission of a letter from Citadel Securities urging stronger oversight of DeFi for tokenized securities, which drew criticism from some crypto advocates. Executives from firms including Citadel Securities, Coinbase, and Galaxy emphasized the importance of regulatory clarity but differed on how decentralized systems should fit within existing frameworks.

The Genius Act has intensified discussions on Wall Street regarding the broader implications of stablecoin regulation. While industry supporters see the law as pivotal for integrating stablecoins into the mainstream financial system, major financial institutions remain cautious. The act's requirement for stablecoins to be fully backed by Treasury bills or similar assets is viewed as a significant step toward legitimizing digital dollar tokens. However, analysts from leading banks argue that it is too early to declare the policy a transformative force for US finance.

JPMorgan CEO Jamie Dimon has formed a high-profile advisory council, including Jeff Bezos, Condoleezza Rice and former NSA director Paul Nakasone, to guide the bank's $1.5 trillion "Security and Resiliency Initiative" aimed at strengthening US supply chains and critical technologies. Dimon also named Todd Combs to run a $10 billion investment fund within the effort, which focuses on national security priorities from rare earths to AI.

JPMorgan Chase is using its custom blockchain to conduct intraday repurchase agreements totaling billions of dollars, swapping digitized US Treasury bonds for JPM Coin. This advancement, using smart contracts on an Ethereum-based blockchain, has attracted Goldman Sachs to join the digital market early next year. The first live trades were conducted between JPMorgan's broker-dealer and banking units, with tests involving Goldman and BNY Mellon as the triparty agent.

The GENIUS Act is set to reshape how banks engage with stablecoins and other digital assets by compelling them to adopt new compliance, security, and data management frameworks. As banks develop their strategies, they face increasingly complex regulatory and operational requirements, making technological modernization essential for meeting these standards and maintaining competitiveness. The act's ongoing policymaking will further define the technical specifications banks must implement, impacting the entire financial sector.

The Securities and Exchange Commission plans to implement an innovation exemption for cryptocurrency companies in January 2026 as part of Project Crypto. The exemption will allow eligible firms to issue tokens without full SEC registration, providing regulatory relief through a controlled sandbox.

The US Commodity Futures Trading Commission has launched a pilot program allowing Bitcoin, Ether, and USDC to serve as collateral in derivatives markets, part of Acting Chair Caroline Pham's broader push to modernize digital asset oversight. The initiative, which includes new reporting requirements for futures commission merchants, rolls back older restrictions and could accelerate institutional use of tokenized collateral.

The Financial Industry Regulatory Authority has issued compliance guidance highlighting risks associated with generative artificial intelligence and cryptocurrency. The guidance details vulnerabilities such as AI agents acting beyond their authority and the potential for AI-driven fraud, as well as issues with firms' disclosures and due diligence regarding cryptocurrency.