JPMorgan: US Crypto Regulations Unlikely to Ease Despite SEC Legal Defeats

Global concern slope JPMorgan has warned investors that U.S. crypto regulations are improbable to ease, adjacent though the Securities and Exchange Commission (SEC) has mislaid respective caller tribunal cases against crypto firms. “It is acold from wide that the regulatory tightening of the crypto manufacture volition lessen importantly going guardant fixed however unregulated this manufacture is,” said JPMorgan’s analysts.

JPMorgan Sees Continued Crypto Regulatory Tightening

JPMorgan’s analysts explained successful a enactment past week that cryptocurrency regulations successful the U.S. are improbable to easiness adjacent aft the U.S. Securities and Exchange Commission (SEC) mislaid respective ineligible battles against crypto firms.

Citing optimism successful the crypto abstraction regarding the support of spot bitcoin exchange-traded funds (ETFs) by the SEC, the JPMorgan analysts cautioned that a spot bitcoin ETF support does not awesome a implicit regulatory displacement toward the crypto industry. Citing 2 ineligible cases wherever the courts ruled against the securities regulator successful favour of Ripple Labs and Grayscale Investments, the concern slope detailed:

While this year’s Ripple vs SEC and Grayscale vs SEC tribunal rulings correspond ineligible defeats for the SEC, it is acold from wide that the regulatory tightening of the crypto manufacture volition lessen importantly going guardant fixed however unregulated this manufacture is.

“We bash not judge U.S. lawmakers would displacement their stance due to the fact that of the supra 2 ineligible cases, particularly with the memories from the FTX fraud inactive fresh,” they stressed, emphasizing that crypto regulations successful the U.S. are “still pending.”

The JPMorgan analysts further noted that the caller BTC rally is “rather overdone,” adding that the drivers down the crypto’s bullishness, specified arsenic the expected support of spot bitcoin ETFs by the SEC and the halving, whitethorn person small interaction connected bitcoin.

While galore successful the crypto manufacture expect that spot bitcoin ETFs volition thrust request for BTC, enticing accepted investors to participate the space, JPMorgan analysts stay unconvinced that these ETFs volition infuse caller superior into the crypto sector. Instead, they expect spot bitcoin ETFs to gully concern from existing bitcoin products, including Grayscale’s bitcoin spot (GBTC), upcoming ETFs, and bitcoin mining firms. The concern bank’s enactment states:

We envisage this displacement arsenic a comparative worth commercialized arsenic respective of the supra bitcoin products commercialized astatine a premium oregon overmuch reduced discount comparative to the past.

SEC Chairman Gary Gensler precocious revealed that the regulator is considering betwixt eight and 10 spot bitcoin ETF applications. JPMorgan said successful September that it expects the SEC to approve multiple spot bitcoin ETFs astatine once. Microstrategy’s president and a vocal proponent of bitcoin, Michael Saylor, has predicted that the request for BTC volition double pursuing the halving and the support of spot bitcoin ETFs.

What bash you deliberation astir JPMorgan’s bitcoin outlook and bash you deliberation U.S. crypto regulations volition easiness aft the SEC mislaid against Ripple and Grayscale? Let america cognize successful the comments conception below.