JPMorgan Chase: Cryptocurrency regulation under the Trump administration may see positive progress

As cryptocurrency markets climbed following the U.S. election, with Bitcoin hitting an all-time high of around $93,500 this week, JPMorgan analysts outlined six key regulatory and market changes that could reshape the U.S. cryptocurrency landscape under Donald Trump's administration and his Republican-led Congress. Analysts said several stalled crypto bills could see quick approval. Among them is the Financial Innovation and Technology for the 21st Century Act (FIT21), which could provide much-needed regulatory clarity by defining the oversight responsibilities of the Securities and Exchange Commission and the Commodity Futures Trading Commission. In addition, the SEC's strategy of increased enforcement could evolve to a more collaborative approach as the regulatory framework becomes clearer. They said high-profile lawsuits against companies such as Coinbase could be mitigated, settled or even dropped. The SEC's Staff Accounting Bulletin No. 121 (SAB 121), which restricts banks from holding digital assets, could be repealed. The SEC could require the settlement of lawsuits over unregistered securities and the launch of futures-based ETFs for those assets before it can approve spot ETFs. These factors could delay the approval of new ETFs or require re-filings. Clearer regulation could increase venture capital, mergers and acquisitions, and initial public offerings in the cryptocurrency space. Although a strategic Bitcoin reserve would greatly enhance Bitcoin's legitimacy and could potentially boost Bitcoin's price, the likelihood of its passage is low. (The Block)