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Recent regulatory initiatives have shown the Securities and Exchange Commission’s (SEC) dominant position in the U.S. in regulating the digital assets space, JPMorgan (JPM) said in a research report last week.
His shares also showed the bias of the sec in the display of most crypto, with possibly Bitcoin (BTC) as the only exception, as securities, the report says. He noted that President Gary Gensler began his opposition to the implementation of special rules for the cryptography industry in September, arguing that most cryptocurrencies should be classified as securities and therefore regulated in accordance with existing securities laws.
"Considering the above, he shouldn't be coming as a surprise for the latter to consider the provision of a staking service as be like offering any other kind of safety," he said. This paves the way for other companies offering sequencing services to be registered as a securities platform with dry, the report added.
The bank has predicted more regulatory measures on permanent issuers, the custody and protection of investors' digital assets, and unbundling of brokerage/trading/lending/clearing/custody activities.
He also expects regular mandated disclosure, reporting and verification of reserves, assets and liabilities in the main crypto entities, analysts conducted by nikolaos panigirtzoglou wrote. These rules will lead to "the convergence of the crypto ecosystem with the traditional financial system over time," he added.
"Benchmarking companies should focus more on direct benchmarking for institutional investors and more on decentralised alternatives (benchmarking challenge) for retail investors," the note said. DeFi is an umbrella term for a variety of financial applications carried out on a blockchain.
Ether (ETH) will likely see additional selling pressure on Ethereum following the forthcoming Shanghai upgrade, as crypto exchange Kraken has 1.2 million ETH staked on the network, a significant amount of which is owned by its U.S. clients. The addition of the million aether milestone rewards that could be removed immediately after the upgrade, the risk of dropping to the aether becomes even more significant, the rating added.
