JPMorgan has stated that the most challenging regulatory environment for cryptocurrency markets is now behind us, following the election of Donald Trump in November. According to a report released Wednesday, the total cryptocurrency market cap has surged by approximately 65% since his reelection, signaling the beginning of a new era for crypto in the U.S.
The report highlights that the Trump administration brings a more crypto-friendly approach, demonstrating eagerness to promote the asset class. Analysts led by Kenneth Worthington noted that the incoming administration has shown a commitment to discussing crypto market regulation and creating policies that support future development in the U.S. Additionally, several key individuals have already been nominated to shape crypto policy and enforcement.
As a result, the report suggests that the “worst regulatory environment for crypto” is now a thing of the past. Going forward, the ecosystem is expected to evolve into a “safer, more transparent, and more productive industry” in terms of regulation.
However, JPMorgan also cautioned that the positive impacts of these changes may take some time to materialize, predicting that policy effects might not be felt for another nine to 12 months during Trump’s term. One significant piece still missing from the administration’s pro-crypto agenda is the nomination for the Commodity Futures Trading Commission (CFTC) chair, which will play a key role in regulating bitcoin (BTC) and ether (ETH).
A more favorable regulatory environment would likely encourage exchanges and brokers to list more tokens and foster greater product innovation, according to the report.
