Despite Tuesday's legislative setback for U.S. stablecoin regulation in the House of Representatives, major Wall Street institutions signaled aggressive moves into the cryptocurrency sector. JPMorgan Chase CEO Jamie Dimon and Citigroup CEO Jane Fraser both confirmed their entry into stablecoin operations during federal debates on crypto-friendly legislation, marking Wall Street's accelerating pivot toward digital assets.

The stablecoin bill's procedural blockage occurred during Congress's "Crypto Week" (July 14-18), where House Republican conservatives halted three crypto-related bills with support from thirteen GOP members joining Democrats. These proposals aimed to establish comprehensive crypto oversight, ban central bank digital currencies, and create the first federal stablecoin framework. Some opponents advocated consolidating the measures rather than separate consideration.

This development follows last month's Senate passage of legislation detailing how U.S. firms can issue dollar-backed stablecoins. Had it cleared the House, the bill would have reached President Trump's desk, potentially catalyzing new market entrants. The Senate version mandates Federal Reserve and OCC oversight for issuers holding $10+ billion assets, while smaller entities would face state regulation. All issuers must maintain cash/Treasury reserves, undergo audits, and disclose holdings and redemption processes.

Stablecoins—cryptocurrencies pegged 1:1 to the dollar—have seen explosive growth, with 98% globally dollar-anchored yet over 80% of transactions occurring outside U.S. borders. Despite legislative hurdles, major banks are preparing for eventual regulatory approval. Notably, longtime crypto-skeptic Dimon reversed his stance, acknowledging JPMorgan must adopt stablecoins to remain competitive. The bank recently unveiled plans for JPMD, a stablecoin-like deposit token exclusive to institutional clients.

During Tuesday's earnings call, Dimon confessed limited understanding of stablecoins' appeal but vowed active participation. Bank of America CEO Brian Moynihan similarly committed to exploring the technology post-legislation, following last month's meetings between BofA and peers about collaborative stablecoin networks. Retail giants Amazon and Walmart are reportedly eyeing opportunities, potentially disrupting traditional payment systems by circumventing card networks like Visa and Mastercard.

The stablecoin surge has ignited global debate: proponents highlight their volatility shelter and secure value storage, while critics warn of collapse risks triggering asset fire sales and enabling money laundering through off-banking-system transfers.