JPMorgan has signaled that the most challenging regulatory hurdles for the cryptocurrency market are now behind us, following Donald Trump’s victory in the November presidential election. In a report released Wednesday, the bank noted that the total market capitalization of cryptocurrencies has increased by about 65% since Trump’s re-election, marking the start of a new era for crypto in the U.S.
Analysts, led by Kenneth Worthington, stated that the new administration brings a wave of crypto-friendly policies and has demonstrated a clear interest in supporting the growth of the cryptocurrency market. They also highlighted that Trump’s team has already shown a willingness to discuss crypto regulation and establish guidelines to keep future industry developments within the U.S. The president-elect has made several key nominations for positions that will play a role in shaping crypto policy and enforcement.
The report emphasized that the “worst regulatory environment” for the crypto sector is now behind us, and the industry is expected to become more secure, transparent, and productive in the coming years from a regulatory standpoint. However, JPMorgan cautioned that tangible policy changes may not be felt for another 9 to 12 months.
The bank also pointed out that the nomination for the Commodity Futures Trading Commission (CFTC) chair, a critical position for regulating bitcoin (BTC) and ether (ETH), is still pending, but once filled, it could further strengthen the administration’s pro-crypto stance.
JPMorgan concluded that a more favorable regulatory landscape would likely lead to the listing of more tokens by exchanges and brokers, stimulating innovation and development within the industry.
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