JPMorgan Expecting Numerous Big Crypto Regulatory Wins

With Trump back in office, JPMorgan predicts key changes in the crypto regulatory landscape, Coindesk reports.

What’s the Scoop?

• FIT21 Passage: This act is expected to gain swift approval, offering much-needed regulatory clarity by clearly defining oversight roles for the Securities and Exchange Commission and the Commodity Futures Trading Commission.
• Stablecoins Act of 2023: The Stablecoins Act aims to establish a framework for stablecoin payments, excluding them from being classified as securities. It could also halt the development of Central Bank Digital Currencies.
• Lawsuits and Enforcement: With clearer regulations on the horizon, the SEC could take a more collaborative approach to crypto oversight. JPMorgan analysts suggest lawsuits against companies like Coinbase might be dropped, while regulatory notices issued to platforms like Uniswap and Robinhood could also be rescinded.
• SEC’s Staff Accounting Bulletin No. 121 (SAB 121): SAB 121, which restricts banks from holding digital assets, could be repealed. This would allow banks to custody assets like Bitcoin and Ethereum.
• BITCOIN Act: The BITCOIN Act proposes using Bitcoin as a U.S. strategic reserve asset. However, analysts believe the chances of this becoming law are very slim.

Bankless Take:

Progress toward clearer crypto regulations marks a significant win for the crypto industry. The GOP's sweep of Washington signals power consolidation that will allow them to push forward on the party platform, which includes supporting the crypto industry. And while the BITCOIN Act has a low likelihood of passing, its mere introduction signals growing interest in the crypto space. As these steps unfold, the industry could see increased adoption and institutional involvement.