Regulation
JPMorgan: US Cryptocurrency Regulations Signal Opposition to Non-Compliant CBDCs and Stablecoins – JPMorgan Chase (NYSE:JPM)
A recent report by JP Morgan (NYSE:JPM) casts doubt on the immediate future of cryptocurrency regulation in the United States.
What happened: The bank’s analysts, led by Nikolaos Panigirtzogloufound an increasing number of regulatory initiatives emerging, but found several key points of contention.
First, it appears that regulators may be against the launch of a central bank digital currency (CBDC), a digital form of US currency issued by the Federal Reserve.
Secondly, the initiatives appear to discourage local banks from fully embracing the cryptocurrency, Coindesk reported.
The regulations also appear to target non-compliant stablecoins, such as Bind (CRYPTO: USDT).
Stablecoins are cryptocurrencies pegged to a stable asset, often the US dollar, to minimize price fluctuations, but some have come under scrutiny over their backing mechanisms.
The report suggests that regulators may favor US-compliant stablecoins, potentially impacting the dominance of non-compliant options.
Read also: Robinhood Announces Acquisition of Cryptocurrency Exchange Bitstamp in $200 Million Deal
JPMorgan analysts point out that several bills aimed at regulating cryptocurrencies are currently stalled.
The “Clarity for Payment Stablecoins Act,” which could strengthen US-compliant stablecoins, has a better chance of being passed before the November elections than other initiatives.
However, the “Financial Innovation and Technology for the 21st Century Act” (FIT21), passed by the House of Representatives, remains blocked without Senate approval.
Congress passed an attempt to overturn a rule that makes it difficult for banks to hold cryptocurrencies (SAB 121), but the President vetoed it Joe Biden.
Additionally, a bill preventing the Federal Reserve from issuing a CBDC (Central Bank Digital Currency Anti-Surveillance State Act) passed the House, but its fate in the Senate remains uncertain.
Because matter: The mix of stalled regulations and legislation paints a picture of uncertainty for the cryptocurrency industry in the United States.
With presidential elections looming, it’s unclear which of these initiatives will gain traction.
The ever-changing world of cryptocurrency requires you to stay informed.
Benzinga next The future of digital assets The November 19 event offers a valuable platform to gain insights from industry leaders and experts.
Read next: Bitcoin Could Reach $150,000 by End of Year If Trump Wins: Standard Chartered
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