According to a report by CoinDesk, JPMorgan stated in a report on Wednesday that Trump's victory in the November presidential election has opened a new era for cryptocurrencies in the U.S., noting that since his re-election, the total market capitalization of cryptocurrencies has surged by about 65%.
Analysts led by Kenneth Worthington wrote: 'This new administration not only brings a crypto-friendly atmosphere but also shows a willingness to actively promote this asset class.'
The report indicated that the incoming administration has already shown a willingness to discuss the regulation of the cryptocurrency market and how to maintain the desire for future development in the U.S. Analysts added that Trump has nominated individuals who will participate in shaping cryptocurrency policy and enforcement.
The report also noted that this means the 'bottom' has been established, indicating that 'the worst regulatory environment for cryptocurrencies' is now in the past, and the crypto ecosystem is now expected to become a 'safer, more transparent, and more productive industry (from a regulatory perspective).'
However, these positive factors may take some time to materialize. JPMorgan warned that the market may need at least 9 to 12 months after Trump's term begins to see the impact of policies.
The importance of the CFTC chairman.
JPMorgan stated that Trump's nomination for chairman of the Commodity Futures Trading Commission (CFTC) is a missing piece in the new administration's pro-crypto agenda, a position that is significant as it may play an important role in regulating Bitcoin (BTC) and Ethereum (ETH).
The report adds that a more productive regulatory environment will encourage exchanges and brokers to list more tokens and foster more product innovation.
Related reports: (Sources say: a16z crypto policy head Brian Quintenz is the top candidate for U.S. CFTC chairman)
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