JPMorgan, the largest bank in the world, recently released a new report on the popular stablecoin Tether (USDT).
In their research report, JPMorgan highlighted the shifting landscape of U.S. crypto regulations, indicating a preference towards the introduction of a central bank digital currency (CBDC) while expressing concerns about local banks and non-compliant stablecoins like Tether (USDT).
The bank observed a surge in regulatory initiatives in the US, prompting speculation on the future of crypto regulations, particularly in light of the upcoming presidential elections.
The analysts, led by Nikolaos Panigirtzoglou, emphasized their stance against a Fed-backed coin, the involvement of U.S. banks in cryptocurrency, non-compliant stablecoins such as Tether (USDT), and the classification of tokens other than Bitcoin (BTC) and Ethereum (ETH) as securities.
Despite the passage of the Financial Innovation and Technology for the 21st Century Act (FIT21) by the House of Representatives, JPMorgan believes that approval by the Senate and the President may not occur before the elections.
The bank also highlighted the unsuccessful attempt to overturn the SAB 121 accounting rule, which restricted banks from holding crypto assets, due to President Joe Biden’s veto.
Furthermore, the report discussed the Central Bank Digital Currency (CBDC) Anti-Surveillance Act, aimed at preventing the issuance of a U.S. CBDC and restricting the use of central bank digital currencies for monetary policy.
While the bill banning the Fed from issuing a CBDC was approved by the House of Representatives, its fate in the Senate remains uncertain.
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