JP Morgan Calls for Crypto Regulation After Recent SEC Crackdown on Crypto Exchanges
JP Morgan is one of the biggest banking enterprises in the USA. The financial giant has recently called for regulations of the cryptocurrency industry to offset the impact of a barrage of lawsuits brought by the SEC against various crypto firms.
The firm has maintained that SEC’s pushback against the cryptocurrency industry can lead to the exit of a billion dollars industry from the country to foreign territories. JP Morgan has taken offense to the host of lawsuits filed by the SEC against various cryptocurrency exchanges.
The firm has thus decided to make a call upon the US officials to issue new regulatory clarity for the cryptocurrency industry. It is worth noting that JP Morgan currently stands at a market cap of $413 billion and it has decided to lean towards the cryptocurrency sector and secure its futures in the American territory.
The reaction from JP Morgan is not a surprise under the pretext of prosecution cases launched against two major crypto exchanges namely Binance and Coinbase.
JP Morgan Asks CFTC and SEC to Work on Crypto Regulations
JP Morgan has called for the importance of cryptocurrency regulations. The firm has maintained that the responsibility of regulatory oversight over the crypto sector can be divided among the CFTC and SEC.
Nikolaos Panigirtzoglou heads the financial analysis and has maintained that at this point it is impossible to ascertain with perfect clarity which cryptocurrencies fall under the banner of security. He maintained that SEC has used ambiguous interpretations of securities to hinder the operational capabilities of various high market-cap cryptocurrencies.
He also claimed that various new cryptocurrency projects are backing out of the American markets on account of fears surrounding regulatory pushback. Some of the major crypto entities that have exited are Crypto.com, Etoro, and Robinhood.
However, the courts have granted a voice to the crypto entities and rejected the SEC request to freeze Binance assets. Meanwhile, the court has also directed SEC to submit a response to the mandamus call of Coinbase within 120 days.
Panigirtzouglou maintained that maybe SEC realizes that it cannot win the battle against the crypto sector and only aims to inflict permanent damage to the industry by shaking the confidence of the investors.
The financial analysts at JP Morgan have maintained that SEC has been trying to avoid issuing regulatory clarity for the cryptocurrency industry. They further maintained that SEC has been dodging regulations by using the predated regulations that were created more than 90 years ago.
Meanwhile, the firm has also alleged that SEC has been working to obstruct crypto sector development to promote CBDCs. The firm also claimed that the battle against cryptocurrency is a carefully calculated political stance.
Keeping these objections in mind, many parties have called for the termination of Gary Gensler as the presiding chairperson of SEC. US Representatives Tom Emmer and Warren Davidson have already submitted the SEC Stabilization Act to call for the dismissal of Gary Gensler and bring about reformation of the federal regulatory agency.
There are also rumors that Gensler is stringing the crypto sector pot just to recover from the rejection from Binance CEO CZ.
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