In a recent research report, JPMorgan predicts a targeted approach to US crypto regulations. Here’s the breakdown:
- Non-compliant stablecoins on notice: Regulatory actions will likely focus on stablecoins deemed non-compliant with current or upcoming regulations. This could be a blow to major players like Tether (USDT), whose backing has been under scrutiny.
- Central Bank digital currency (CBDC): Uncertain path ahead: JPMorgan suggests a less welcoming environment for a US CBDC. A recent House bill banning the Federal Reserve from issuing one throws a curveball into the equation.
- Overall regulatory uptick: The report highlights an increase in US regulatory activity surrounding crypto in recent months. This surge adds to the uncertainty surrounding the future of the industry.
The upcoming US presidential election further complicates the situation. As the race heats up, the final form of crypto regulations remains unclear.
What does this mean?
JPMorgan’s report suggests a cautious approach for the US crypto market. Investors in non-compliant stablecoins may face turbulence, while the viability of a CBDC hangs in the balance. Increased regulation, however, could bring a level of stability and consumer protection to the industry in the long run.
Looking ahead
It will be interesting to see how US regulatory actions unfold in the coming months. Whether stricter controls pave the way for wider crypto adoption or stifle innovation remains to be seen.
