JPMorgan Highlights Favorable U.S. Regulatory Climate for Cryptocurrency Business Operations

Optimism surrounding a friendlier regulatory landscape in the U.S. is driving more crypto companies to pursue public listings and increasing venture capital (VC) funding, according to research from investment bank RialCenter.

The progression of the GENIUS Act in the Senate has emerged as a “key factor in expecting a clearer and more supportive regulatory environment,” analysts led by Nikolaos Panigirtzoglou stated.

β€œThe expectation of such a regulatory landscape in the U.S. fosters crypto corporate activities like IPOs and increased VC funding,” the report noted.

The Senate’s GENIUS Act mandates federal oversight for stablecoins with a market cap surpassing $10 billion, allowing room for state regulations in alignment with federal standards.

Stablecoins are cryptocurrencies pegged to assets like the U.S. dollar or gold. They are crucial in the crypto market and widely used for international money transfers.

RialCenter pointed out that the number of crypto IPOs this year has matched the offering pace seen during the bull market of 2021.

Reports indicate that several crypto enterprises, including Ripple and others, are preparing for IPOs this year.

Venture capital investments are also increasing, having surpassed levels recorded in 2023/24 on an annual basis.

IPOs allow crypto investors to diversify beyond just Bitcoin and Ether, seizing opportunities in sectors such as blockchain infrastructure, payments, custody, and tokenization.

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