JPMorgan President Daniel Pinto shared a pointed observation during the Hong Kong Female CEO Summit 2025, highlighting one of the biggest barriers facing the next phase of digital finance — the lack of unified global regulation for stablecoins. According to Pinto, until countries align on a common framework, stablecoins will struggle to reach their full potential, especially in the realm of cross-border micro-payments. While the technology already exists to enable fast, borderless transactions, inconsistent laws and compliance requirements make it difficult for financial institutions and fintech platforms to scale these systems globally.
Pinto emphasized that regulators should aim to embrace innovation rather than reconstruct financial systems entirely, focusing on risk management and oversight rather than resistance. The key, he explained, lies in creating a policy structure that accounts for the unique attributes of stablecoins — their programmability, collateralization models, and their link to fiat currencies — while ensuring consumer protection and financial stability. Without this balance, innovation risks being choked at the regulatory level, even as demand for efficient digital money continues to rise.
Adding to the discussion, Franklin Templeton President Jenny Johnson offered a pragmatic view on regulatory adaptation. She stated that most institutions are ready to innovate, provided the rules are clearly defined. Using tokenization as an example, she noted that jurisdictions like Hong Kong could benefit from principle-based regulation, focusing less on prescriptive measures and more on foundational principles such as fairness and transparency. If companies understand what is required at a core level — for instance, whether customers are being treated fairly — they can design compliant systems more confidently and at a faster pace.
Meanwhile, former HKEX Chair Laura Cha commended the Hong Kong Monetary Authority’s proactive approach toward stablecoin regulation, calling it the right move in shaping the city’s position as a regional digital finance hub. She noted that a clear and transparent regulatory framework will be key for both investor confidence and institutional participation. In her view, Hong Kong’s leadership in defining stablecoin standards early could position it as a bridge between East and West in digital asset regulation, attracting more fintech and blockchain ventures to operate within its jurisdiction.
The discussion underscored an emerging global reality — the stablecoin sector is maturing faster than policy coordination can keep up. While the United States, Europe, and parts of Asia explore independent rulebooks, interoperability remains limited. For stablecoins to evolve beyond trading pairs and DeFi protocols into mainstream payment infrastructure, global regulators will have to cooperate on baseline definitions, reserve transparency, and transaction oversight.
In essence, Pinto’s statement is both a warning and an invitation. Without unified policies, stablecoins risk being trapped within regional borders despite being built for global utility. But if regulators collaborate to harmonize rules while fostering innovation, stablecoins could transform into the backbone of the next generation of digital payments — making finance as seamless and instant as the technology already allows.