The Worst Regulatory Environment for Crypto Is Behind Us
According to a report from JPMorgan, Donald Trump’s victory in the November presidential election signals a positive shift for the cryptocurrency market in the United States. Since his re-election, the total cryptocurrency market capitalization has surged by 65%, reflecting growing confidence in the sector.
Pro-Crypto Stance of the New Administration
The new administration not only expresses a welcoming attitude toward cryptocurrencies but has also shown an intention to support this asset class, analysts led by Kenneth Worthington noted.
Trump’s government has demonstrated a willingness to openly discuss crypto market regulation and strategies to keep future development within the United States. The report highlights that the newly elected president has already begun nominating individuals who will play key roles in shaping crypto policy and enforcement.
End of the Hostile Regulatory Environment
JPMorgan asserts that a bottom has been set, meaning the “worst regulatory environment” for cryptocurrencies is now in the past. The crypto sector is expected to become:
Safer,
More transparent,
More productive from a regulatory perspective.
Political Impact Will Take Time to Materialize
Despite the positive outlook, JPMorgan warns that the market may not see the political impacts for at least 9 to 12 months into Trump’s term. The report emphasizes that regulatory changes and their benefits will take time to be implemented.
The Role of the CFTC in Crypto Regulation
JPMorgan notes that Trump’s administration has yet to make a nomination for the Commodity Futures Trading Commission (CFTC) chair. This position is particularly significant as it is likely to influence the regulation of Bitcoin (BTC) and Ethereum (ETH).
More Innovation and Tokens on the Horizon
A more productive regulatory environment could lead to the following advancements:
Listing of more tokens on exchanges and broker platforms,
Encouragement of new product innovations within the crypto sector.
JPMorgan’s report emphasizes that a friendlier regulatory approach could propel the cryptocurrency industry into a new era of growth and stability.
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