Legislation and Regulatory Clarity Expected
JPMorgan analysts predict significant regulatory changes under President-elect Donald Trump’s administration. Pending crypto bills like the Financial Innovation and Technology Act and the Clarity for Payment Stablecoins Act could provide much-needed clarity. Meanwhile, the Central Bank Digital Currency Anti-Surveillance State Act could limit U.S. CBDC development, promoting private stablecoins.Evolving Crypto Regulation and Banking Participation
The SEC’s enforcement-focused strategy may shift toward collaboration, potentially resolving high-profile lawsuits against firms like Coinbase. Analysts also foresee banks gaining greater freedom to hold crypto assets if current restrictions, like SAB 121, are repealed. Leadership changes at key financial institutions could further accelerate this trend.Spot ETFs and Institutional Growth
While optimism surrounds spot ETFs for assets beyond bitcoin, regulatory hurdles remain. Analysts also anticipate growth in venture capital, tokenization, and decentralized autonomous organizations, spurred by clearer regulations. However, the BITCOIN Act, proposing a U.S. bitcoin reserve, is considered unlikely to pass.
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