JPMorgan Chase has stated that US cryptocurrency regulations are moving towards opposing the creation of central bank digital currencies (CBDCs), local bank involvement in cryptocurrencies, and non-compliant stablecoins.
The strengthening regulatory measures in the United States have raised concerns about the future of cryptocurrency regulation before the presidential election. Analyst reports led by Nikolaos Panigirtsoglu suggest that these measures appear to oppose the Federal Reserve’s currency, bank cryptocurrency activities, non-compliant stablecoins like Tether (USDT), and the classification of all tokens other than Bitcoin (BTC) and Ethereum (ETH) as securities.
Compared to the other three proposals, the “Clarity for Stablecoins Act” is seen as more likely to pass before the election. If passed, it would support stablecoins that meet US standards but challenge non-compliant stablecoins like Tether.
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The “Financial Innovation and Technology in the 21st Century (FIT21) Act,” passed by the House of Representatives, still requires approval from the Senate and the President, which is unlikely to happen before the election.
JPMorgan Chase also pointed out that President Biden’s veto of the resolution to repeal accounting rule SAB 121 has made custody of bank crypto assets more complex.
