A recent report from global investment bank JPMorgan Chase reveals an optimistic outlook for the cryptocurrency market , predicting a significant and robust recovery for digital assets in the second half of this year. The bank links this recovery to a crucial condition: the success of US lawmakers in passing comprehensive market regulation legislation before mid-year, which could be a game-changer for both Wall Street and the crypto world.
The end of the era of "regulation through enforcement"
The bank's research note explained that the paramount importance of these regulations lies in their ability to end the uncertainty that has plagued the market for years. The crypto sector in the United States has suffered from what is known as "regulation through enforcement," where regulatory bodies have relied on filing lawsuits against platforms rather than establishing clear rules. JPMorgan believes that enacting market structuring laws will provide the necessary regulatory clarity to define the powers of various authorities, thereby reducing legal risks and encouraging long-term investment.
Coding and institutional engagement
A key factor in the bank's optimism is the strengthening of tokenization, the process of converting real assets into digital tokens on the blockchain. According to a Bloomberg report, the existence of a federal legal framework will open the door wide to major institutional participation. Banks and hedge funds that were hesitant to enter the market due to regulatory concerns will find in the new law a safe haven for injecting liquidity, thus enhancing market depth and stability.
The legislative scene: between representatives and senators
On the political front, the Transparency Act passed by the House of Representatives is a first step in a broader congressional effort to regulate digital assets. However, the path still faces hurdles in the Senate, where lawmakers remain deeply divided over the details of regulation. Analysts suggest that the current debates, including the controversy surrounding federal frameworks for issuing stablecoins and what are referred to in political circles as previous initiatives, reflect a genuine desire for a resolution, despite the procedural delays.
In conclusion, despite the current state of caution and pessimism among individual investors, JPMorgan believes that the fundamentals are heading towards positivity if the legislative obstacles are overcome, making the coming months crucial in determining the course of the American and global digital economy.
