Morning Digest: Key News on Ethereum Foundation, JPMorgan & the Fed

Three major developments are making waves in the U.S. crypto space, signaling a more supportive stance toward digital assets and potentially shaping the industry's next phase. 

• Banking giant JPMorgan is considering expanding its lending program by accepting crypto ETF shares as collateral. 
• The nonprofit Ethereum Foundation is reviewing updates to its treasury management policy. 
• The Federal Reserve appoints a new Vice Chair for Supervision.

JPMorgan and Crypto ETFs as Collateral

Clients of JPMorgan Chase & Co. may soon be able to use cryptocurrency ETFs, including BlackRock’s iShares Bitcoin Trust, as collateral for loans, Bloomberg reports, citing anonymous sources.

The move could extend to both traders and wealth management clients, with digital assets counted toward net capital calculations. According to sources, the bank plans to expand its current case-by-case assessment of crypto ETFs, aligning the process with how it evaluates stocks or real estate.

The development follows the Trump administration’s rollback of Fed guidelines in April 2025 that had limited banks’ involvement in crypto activities.

Ethereum Foundation Revises Treasury Policy

The Ethereum Foundation released a new treasury management strategy, aiming to reduce annual spending from 15% to 5% by 2030 and increase the use of DeFi protocols to generate yield. The foundation views 2025–2026 as a pivotal period and plans to manage its ETH reserves more deliberately.

Additionally, EF plans to engage in solo staking and supply wETH to DeFi protocols in support of “Defipunk” principles, aligned with cypherpunk values of privacy and decentralization.

Michelle Bowman Confirmed as Fed Vice Chair for Supervision

The U.S. Senate confirmed Michelle Bowman as Vice Chair for Supervision at the Federal Reserve in a 48–46 vote. Pro-crypto Senator Cynthia Lummis called the decision a signal of a “brighter future for digital assets.”

Bowman, a Fed Governor since 2018, emphasized the need for streamlined regulation and a fact-based approach. Meanwhile, the Crypto Council for Innovation voiced support for her appointment, stating her experience could help reflect blockchain industry interests in policymaking.