JP Morgan Predicts Increased SEC Regulation in the Digital Asset Space

A recent research report by JP Morgan Chase & Company jpm This highlights how the US Securities and Exchange Commission (SEC) views most cryptocurrencies as securities.

This view extends to staking services, which the SEC regards as providing any other type of security.

according to the report To CoinDesk predicts that stablecoin issuers, custody and security of investors’ digital assets, and broker/traders/lending/clearing/custody activities will face increased regulatory actions.

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The bank also expects regular disclosure, reporting and auditing of reserves, assets and liabilities in major crypto entities.

These regulations will eventually lead to a “convergence of the crypto ecosystem towards the traditional financial system over time”.

The staking business should shift toward direct staking for institutional investors and more toward decentralized options for retail investors (decentralized finance, or DeFi, is an umbrella term for a variety of financial applications performed on a blockchain).

Ethereum ETH/USD JP Morgan predicts that it will experience increased selling pressure following the upcoming Shanghai upgrade.

cryptocurrency exchange Kraken The network holds 1.2 million ETH at stake, and a significant amount of this ETH is held by its US customers.

Adding one million Ether to staking rewards that can be withdrawn immediately after the upgrade, the downside risk to Ether becomes even more significant.

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