New Delhi, July 2 -- JPMorgan Chase is backing Washington's most ambitious attempt to regulate crypto in years, and simultaneously trying to gut one of its central provisions.

the section that would allow stablecoins to pay yields to their holders.

The gap between those two positions reflects the peculiar bind Wall Street finds itself in as crypto goes mainstream. The banks helped push for federal oversight. Now they are discovering that oversight may open a door they have spent decades trying to keep shut.

Umar Farooq, who runs JPMorgan's digital assets business, and Peter Muriungi, a senior policy executive at the bank, have outlined the concern in Congressional testimony and public filings in recent weeks, according to CoinDesk. The...