JPMorgan Analyst: Crypto Regulation Under the Trump Administration May See Positive Developments, but Approval Probability of Strategic Bitcoin Reserve Is Low

BlockBeats News, November 15th, according to The Block, a J.P. Morgan analyst outlined six key regulatory and market changes in the crypto industry under the Trump administration, which could reshape the U.S. cryptocurrency landscape under the Trump administration and its Republican-led Congress.

The J.P. Morgan analyst stated that several stalled cryptocurrency bills could quickly gain approval. These bills include the "Financial Innovation and Technology Act of the 21st Century" (FIT21), which, by clarifying the regulatory responsibilities of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), could provide much-needed regulatory clarity to the crypto industry.

They also noted that as the regulatory framework becomes clearer, the SEC's enforcement approach may evolve into a more collaborative one. High-profile lawsuits against companies like Coinbase could be mitigated, settled, or even dismissed. Regulatory notices issued to companies like Robinhood and Uniswap may be reconsidered, thereby reducing litigation risks for the broader crypto industry. The U.S. Securities and Exchange Commission's restriction on banks holding digital assets under Staff Accounting Bulletin No. 121 (SAB 121) may be repealed.

Furthermore, the J.P. Morgan analyst also stated that the SEC may require resolutions of lawsuits concerning unregistered securities and may demand the launch of futures-based ETFs for these assets before approving spot ETFs. These factors could delay the approval of new ETFs or necessitate re-filings. Clearer regulations could increase cryptocurrency industry venture capital, mergers and acquisitions, and initial public offerings. Although a strategic Bitcoin reserve would significantly enhance Bitcoin's legitimacy and could potentially boost its price, the likelihood of its passage is low.