Investing.com — JPMorgan analysts expect significant changes in crypto markets during Trump’s second term in office, driven by expectations of a Republican-controlled Congress and crypto-friendly policies.
According to the investment bank, these changes could reshape the regulatory and market landscape.
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Pending Legislative Advances
JPMorgan says key crypto-focused legislation, such as the Financial Innovation and Technology for the 21st Century Act (FIT21) and the Clarity Stablecoins for Payments Act of 2023, could be accelerated. They explain that the bills aim to clarify the role of the SEC and CFTC, establish a stablecoin framework, and limit government-backed digital currencies in favor of private-sector alternatives. -
A collaborative regulatory environment
JPMorgan suggests that the SEC may shift from enforcement-oriented actions to a more collaborative approach. Lawsuits like the SEC’s case against Coinbase (NASDAQ: ) could be softened or settled, possibly like Robinhood (NASDAQ: ) and . -
Relaxation of banking restrictions
They also note that the SEC’s reversal of SAB 121, which limits banks’ ability to engage with digital assets, could promote more traditional bank involvement in crypto custody. Leadership changes at the OCC and FDIC may encourage banks to interact more with digital assets. -
Approval of ETF
JPMorgan believes the market may look optimistic for spot ETFs, particularly for and. However, legal hurdles surrounding the classification of these assets as securities may delay their approval. -
Increase investment
Clearer regulations can boost venture capital, IPOs, and M&A activity, according to the bank, noting that initiatives like Wyoming’s DAO-friendly laws offer a framework that can encourage more innovation. -
Less likely to reserve
While the BITCOIN Act proposes to establish Bitcoin as a US strategic reserve asset, JPMorgan sees this as a less likely event.
JPMorgan concludes that these changes could unlock growth and legitimacy for crypto markets in the U.S., although they note that some reforms may face delays or political resistance.
