Regulation
US Cryptocurrency Regulation Opposes CBDC and Stablecoins: JPMorgan
According to JPMorgan, US crypto rules appear to be evolving on a path that opposes the creation of a digital currency by the central bank, opposes the adoption of cryptocurrencies by local banks, and opposes non-compliant stablecoins.
The bank says regulatory enforcement has increased in the United States in recent months, creating concerns about the regulatory path for cryptocurrencies ahead of the presidential election later this year.
Analysts led by Nikolaos Panigirtzoglou reported that the new regulatory measures appear to oppose a Fed coin, the involvement of US banks in the cryptocurrency field, non-compliant stablecoins such as Tether (USDT), and the classification of all tokens outside of Bitcoin (BTC) and Ether (ETH) as securities.
According to the analysis, the Clarity for Payment Stablecoins Act is more likely to be enacted before the November elections than three other ideas. If passed, the law will help US-compliant stablecoins, but risk the supremacy of non-compliant stablecoins like Tether.
The Financial Innovation and Technology for the 21st Century Act (FIT21), enacted by the House last month, still needs approval from the Senate and the president, which is doubtful before the election, according to the bank.
JPMorgan adds that Congress passed a resolution repealing accounting rule SAB 121, which made it harder for banks to hold cryptocurrency assets, but President Joe Biden vetoed it the resolution.
The Digital Central Bank (CBDC) Anti-Surveillance State Act aims to stop a US CBDC, preventing the Federal Reserve from using particular consumer and monetary policy items. THE The House passed a bill banning the Federal Reserve from issuing CBDCs last month, but its chances in the Senate are uncertain.
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