JPMorgan analysts predicted that US crypto companies like Binance and Coinbase, both of which were sued by the SEC last week, may face pressure to register with the agency. JPMorgan analysts also pointed to altcoin Ethereum and pointed to growth. Here are the details…
Cryptocurrency exchanges can register with the SEC
Leading US cryptocurrency exchanges, including Binance and Coinbase, may face increasing pressure to comply with registration requirements imposed by the Securities and Exchange Commission (SEC), according to JPMorgan analysts. Analysts also highlighted Ethereum’s potential to further expand its market share. Analysts from American investment banking giant JPMorgan noted that US cryptocurrency exchanges may be forced to register as brokers with the SEC.
According to a note from analysts led by Nikolaos Panigirtzoglou, the majority of cryptocurrencies can be considered investment contracts, although there is the possibility of broker registration requirements for US-based exchanges. The note emphasized that this could have dual implications for the crypto industry. On the one hand, it will be more burdensome for the industry. On the other hand, according to analysts, crypto markets will be subject to similar regulations as traditional markets such as stocks. Thus, it will offer greater transparency and investor protection.
JPMorgan analysts pointed out that the measures taken by the SEC this year have increased the need for well-defined regulatory frameworks in the United States. Due to the lack of clarity on this issue, analysts have discussed the possibility of US crypto companies possibly shifting abroad and moving to decentralized platforms.
The dominance of the leading altcoin Ethereum may increase
As we have reported as Kriptokoin.com, the SEC; ADA has declared many cryptocurrencies as securities, including SOL and MATIC. JPMorgan analysts reported that in the event of the SEC’s victory, the tokens could be delisted by exchanges. He argued that this, in turn, could potentially limit the development of related blockchains. However, analysts drew attention to the possibility that this result could work for Ethereum.
According to analysts, the SEC’s recent attempts to target tokens perceived as Ethereum rivals and often referred to as “Ethereum killers” within the crypto community indicate the possibility of Ethereum continuing its dominance in the arena of smart contract-focused blockchains. JPMorgan analysts commented specifically on BNB. He stated that in the possible scenario of Binance’s collapse, the BNB token may retain some value as long as Binance remains operational. Analysts agreed that this assumption is not absolute, as the BNB Blockchain is currently focused on the Binance exchange.
As we have reported as Kriptokoin.com, Binance Coin (BNB) is issued by the cryptocurrency exchange Binance. This coin acts as a “utility token” that facilitates transactions on the cryptocurrency exchange.
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