Regulation
JPMorgan: US Crypto Regulations Signal Opposition to Non-Compliant CBDCs and Stablecoins – JPMorgan Chase (NYSE:JPM)
A recent report from J.P. Morgan JPM casts doubt on the immediate future of regulation of cryptocurrencies in the United States.
What happened: The bank’s analysts, led by Nikolaos Panigirtzoglounoted the emergence of a growing number of regulatory initiatives, but identified several key points of contention.
First, it appears regulators may oppose the launch of a central bank digital currency (CBDC), a digital form of U.S. currency issued by the Federal Reserve.
Second, the initiatives appear to discourage local banks from fully adopting crypto, Coindesk reported.
The regulations also appear to target non-compliant stablecoins, such as Attached USDT/USD.
Stablecoins are cryptocurrencies tied to a stable asset, often the US dollar, to minimize price fluctuations, but some have faced scrutiny for their backing mechanisms.
The report suggests that regulators may favor compliant stablecoins in the United States, which could impact the dominance of non-compliant options.
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JPMorgan analysts point out that several bills aimed at regulating crypto are currently stalled.
The “Clarity for Payment Stablecoins Act,” which could strengthen U.S.-compliant stablecoins, is more likely to pass before the November election compared to other initiatives.
However, the “Financial Innovation and Technology for the 21st Century Act” (FIT21), passed by the House of Representatives, remains stuck without Senate approval.
An attempt to overturn a rule making it difficult for banks to hold crypto assets (SAB 121) passed Congress but was vetoed by the president. Joe Biden.
Additionally, a bill preventing the Federal Reserve from issuing a CBDC (Central Bank Digital Currency Anti-Surveillance State Act) has passed the House, but its fate in the Senate remains uncertain.
Why is this important: The mix of blocked regulations and legislation paints a picture of uncertainty for the U.S. crypto industry.
As the presidential election approaches, it is unclear which, if any, of these initiatives will gain traction.
The ever-changing world of cryptocurrencies require staying informed.
The next Benzingas The future of digital assets The November 19 event provides a valuable platform to gain perspectives from industry leaders and experts.
Read next: Bitcoin could hit $150,000 by year-end if Trump wins: Standard Chartered
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