Benzinga - by Murtuza Merchant, Benzinga Staff Writer.
A recent report by JPMorgan (NYSE:JPM) casts doubt on the immediate future of cryptocurrency regulation in the United States.
What Happened: The bank’s analysts, led by Nikolaos Panigirtzoglou, found a growing number of regulatory initiatives emerging but found several key points of contention.
Firstly, it appears regulators may be opposed to the launch of a central bank digital currency (CBDC), a digital form of U.S. currency issued by the Federal Reserve.
Secondly, the initiatives seem to discourage local banks from embracing crypto altogether, Coindesk reported.
The regulations also appear to target non-compliant stablecoins, such as Tether (CRYPTO: USDT).
Stablecoins are cryptocurrencies pegged to a stable asset, often the U.S. dollar, to minimize price fluctuations but some have faced scrutiny over their backing mechanisms.
The report suggests that regulators might favor U.S.-compliant stablecoins, potentially impacting the dominance of non-compliant options.
Also Read: Robinhood Announces Acquisition Of Crypto Exchange Bitstamp in $200M Deal
JPMorgan analysts point out that several proposed bills aimed at regulating crypto are currently stalled.
The “Clarity for Payment Stablecoins Act,” which could bolster US-compliant stablecoins, has a higher chance of passing before the November elections compared to other initiatives.
However, the “Financial Innovation and Technology for the 21st Century Act” (FIT21), passed by the House of Representatives, remains stuck without Senate approval.
An attempt to overturn a rule making it difficult for banks to hold crypto assets (SAB 121) was passed by Congress but vetoed by President Joe Biden.
Additionally, a bill blocking 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.
Why It Matters: The mixed bag of regulations and stalled legislation paints a picture of uncertainty for the crypto industry in the US.
With the presidential election looming, it’s unclear which, if any, of these initiatives will gain traction.
The ever-evolving world of cryptocurrency demands staying informed.
The upcoming Benzinga’s Future of Digital Assets event on Nov. 19 offers a valuable platform to gain insights from industry leaders and experts.
Read Next: Bitcoin Could Reach $150K By Year-End If Trump Wins: Standard Chartered
Image: Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.