JPMorgan Says U.S. Crypto Regulations Are Against CBDCs and Non-Compliant Stablecoins Like Tether

There have been four recent efforts to regulate cryptocurrencies, but the research claims that the stablecoin law has the best chance of passing before the US presidential election.

According to a study report by JPMorgan (JPM), U.S. crypto rules are heading in a way that is hostile to the introduction of a digital currency by the central bank, against local banks using crypto, and against stablecoins that do not comply.

In light of the impending presidential election later this year, the bank expresses concern about the potential trajectory of crypto regulation in light of the recent uptick in regulatory efforts in the United States.

The study found that out of four bills, the Clarity for Payment Stablecoins Act has the best probability of passing before the November election. Tether and other non-compliant stablecoins would face a dominant threat if the measure were to pass, while U.S. compliance stablecoins would benefit. Typically tied to the dollar, stablecoins may also employ other assets or currencies like gold.

House members passed the Financial Innovation and Technology for the 21st Century Act (FIT21) last month, but the bill must now go to the Senate for approval and, finally, to the president. According to the bank, it is very unlikely to occur before the election.

JPMorgan points out that President Joe Biden rejected a resolution that Congress had enacted to repeal the SAB 121 accounting regulation, which had made it more difficult for banks to hold crypto assets.

The article also said that the Central Bank Digital Currency (CBDC) Anti-Surveillance State Act is an effort to obstruct a CBDC in the United States. It prohibits Federal Reserve banks from providing customers with certain items and from using a CBDC as a tool for monetary policy. Despite last month’s House passage of a measure prohibiting the Federal Reserve from issuing CBDCs, the bill’s Senate chances remain uncertain.

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