JPMorgan: U.S. regulators moving towards opposition to non-compliant stablecoins like Tether

According to a report from CoinDesk, JPMorgan stated in a research report that cryptocurrency regulations in the United States seem to be moving against the introduction of a central bank digital currency (CBDC), against local banks embracing cryptocurrencies, and against non-compliant stablecoins.

Recent Regulatory Actions in the United States

JPMorgan pointed out that the United States has strengthened regulatory measures in recent months, raising questions about the direction of cryptocurrency regulation before the presidential election. The report indicates that the recent regulatory actions appear to be:

• Opposing central bank digital currencies (CBDC)
• Opposing U.S. banks' involvement in cryptocurrencies
• Opposing non-compliant stablecoins like Tether
• Opposing classifying all tokens other than Bitcoin (BTC) and Ethereum (ETH) as securities

Probability Higher for "Clarity in Payments Stablecoin Act" to Pass

JPMorgan believes that there is a higher chance for the "Clarity in Payments Stablecoin Act" to be approved before the November election. The act will support compliant stablecoins in the U.S., but it will threaten the dominance of non-compliant stablecoins like Tether.

Stablecoin Act May Impact Tether's Dominance? S&P Rating: Banks Could Be the Biggest Winners

The "21st Century Financial Innovation and Technology Act" (FIT21) passed by the House of Representatives last month still requires approval from the Senate and the President. JPMorgan stated that this scenario is unlikely to happen before the election.

Cryptocurrency Market Bill FIT21 Clears House, Support and Opposition Voices Rise, What's Next?

Although Congress passed a resolution to overturn the SAB 121 accounting rule that made it harder for banks to custody crypto assets, the resolution was vetoed by President Biden.

Biden Exercises Veto Power! Prevents Congress from Expanding SEC Powers: Upholding SAB 121 Accounting Principles Can Protect Investors

Furthermore, the "Central Bank Digital Currency Surveillance Prohibition Act" aims to prevent the U.S. from issuing a central bank digital currency (CBDC) and stop the Federal Reserve from offering certain products to consumers and implementing monetary policy using a CBDC. The House of Representatives passed the bill last month to ban the issuance of a CBDC by the Federal Reserve, but the prospects in the Senate remain unclear.