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

Odaily Planet Daily News: After the US election, the cryptocurrency market climbed, with Bitcoin hitting a historic high of around $93500 this week. Morgan Stanley analysts outlined six key regulatory and market changes that could reshape the US cryptocurrency landscape under the Donald Trump administration and its Republican led Congress. Analysts say that several stalled encryption bills may quickly be approved. This includes the Financial Innovation and Technology Act of the 21st Century (FIT21), which can provide much-needed regulatory clarity by defining the supervisory responsibilities of the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission. In addition, as the regulatory framework becomes clearer, the SEC's strategy of increasing enforcement efforts may evolve into a more collaborative approach. They stated that high-profile lawsuits against companies such as Coinbase may be mitigated, settled, or even revoked. The US Securities and Exchange Commission's Employee Accounting Statement 121 (SAB 121), which restricts banks from holding digital assets, may be repealed. The SEC may require the resolution of lawsuits related to unregistered securities and demand the launch of futures based ETFs for these assets before approving spot ETFs. These factors may delay the approval of new ETFs or require re filing. Clearer regulation may increase venture capital, mergers and acquisitions, and initial public offerings in the cryptocurrency sector. Although strategic Bitcoin reserves will greatly enhance the legitimacy of Bitcoin and may push up its price, the likelihood of its passage is low. （The Block）