Last week on Monday, US-based crypto exchanges, including Coinbase and Binance, US, for which a lawsuit was filed by the Securities and Exchange Commission (SEC), could force crypto exchanges to register.
According to JPMorgan’s strategist, Nikolaos Panigirtzoglou, he suggests that in the future, all cryptocurrency exchanges might be compelled to transition into brokers and that a majority of cryptocurrencies could be treated as securities.
Last week, both Coinbase and Binance faced charges from regulators, which has sparked considerable apprehension about the regulatory environment surrounding the digital asset industry in the country. Consequently, JPMorgan forecasts a future where registration becomes a requirement for operating exchanges.
Last week, the digital asset industry was taken aback by a series of lawsuits filed by the SEC against Binance and Coinbase, two of the largest cryptocurrency exchanges worldwide. The regulator accused them of violating securities laws, which could potentially reshape the industry’s future in the United States.
According to JP Morgan, the Securities and Exchange Commission (SEC) may eventually compel cryptocurrency exchanges to register as brokers. This regulatory mandate would entail classifying a significant portion of cryptocurrencies as securities.
“Eventually, the SEC position might be confirmed by lawmakers and Coinbase and Binance. US and other US exchanges would have to register as brokers, and most cryptocurrencies would be treated as securities”.
JPMorgan strategists led by Nikolaos Panigirtzoglou wrote in a note on Thursday. “This could be more onerous and costly for the crypto industry, but there could be positives as well, as crypto markets would be subjected to similar regulations applied to traditional markets such as equities and thus offer more transparency and investor protection.”
The future of companies operating in the United States hinges on the prospect of clear regulatory guidelines. However, the current actions taken by the SEC to establish such clarity seem to be hindering rather than facilitating its attainment.