JPMorgan has suggested that the most challenging regulatory conditions for the cryptocurrency market are now in the past, following Donald Trump’s victory in the November presidential election. According to a report released on Wednesday, the total market capitalization of cryptocurrencies has surged by approximately 65% since Trump’s re-election, signaling the beginning of a new era for the crypto space in the U.S.
The report, led by analyst Kenneth Worthington, noted that the incoming administration is positioning itself as crypto-friendly, with a clear willingness to support the growth of the asset class. Additionally, the Trump administration has already shown interest in discussing crypto regulation and ensuring that future developments in the industry remain based in the U.S. Several key nominations have been made for positions that will help shape the country’s crypto policies and regulatory framework.
JPMorgan highlighted that the “worst regulatory environment” for crypto is now behind the industry, and going forward, the sector is expected to become safer, more transparent, and more productive in regulatory terms. However, the bank warned that the effects of these positive developments may take up to 9 to 12 months to materialize in actual policy changes.
The report also pointed out that the nomination for the Commodity Futures Trading Commission (CFTC) chair is an important piece of the puzzle for the administration’s crypto agenda. This position will likely play a significant role in regulating major cryptocurrencies like bitcoin (BTC) and ether (ETH).
JPMorgan concluded that the improved regulatory environment would likely encourage more tokens to be listed on exchanges, spur greater product innovation, and help advance the industry overall.
