JPMorgan: Trump Administration Brings 'New Era' for US Crypto

The worst days of the crypto market are behind us, according to JPMorgan analysts.

According to a report from JPMorgan, the Trump administration has ushered in a "new era" for the crypto market in the US. The study found that the worst regulatory environment for crypto is over.

After his re-election victory in November, Donald Trump has breathed new life into crypto, paving the way for the growth of this asset class. The clearest evidence is that the total crypto market capitalization has increased by 65% ​​since Donald Trump won.

Analysts led by Kenneth Worthington said that the new administration is willing to discuss the regulation of the crypto market and seek to keep the sector thriving within the US territory. President Trump has also taken many landmark actions such as:

·      Meeting with CEOs of major crypto companies and planning to create an advisory council of these representatives.

·      Nominating Paul Atkins, a former SEC commissioner who runs a law firm that works with crypto companies, to replace Chairman Gary Gensler.

·      Appointing David Sacks to the position of “White House Crypto and AI Policy Advisor”.

·      Selecting crypto-friendly cabinet candidates: Including Scott Bessent (Secretary of the Treasury), Howard Lutnick (Secretary of Commerce), Robert F. Kennedy Jr. (Secretary of Health and Human Services), and Elon Musk (Secretary of Government Efficiency - DOGE).

·      Proposing to give more crypto regulatory authority to the CFTC, implying that crypto is not a security under SEC supervision.

·      Considering the establishment of a strategic Bitcoin reserve, and using 198,109 BTC seized by the Department of Justice to reduce the national debt ratio.

The report suggests that the crypto ecosystem will become a “safer, more transparent, and more efficient (in terms of regulation)” industry from here on out.

However, JPMorgan also warned that the positive impacts of the new policies may take at least 9 to 12 months after Trump takes office to become clear. One point to note is that the administration has yet to nominate a chairman for the Commodity Futures Trading Commission (CFTC), an important position in regulating Bitcoin (BTC) and Ethereum (ETH).

JPMorgan experts argue that a more efficient regulatory environment will encourage exchanges and brokers to list more new tokens, while encouraging innovation in the industry.

Overall, in the latest report, JPMorgan remains optimistic about the crypto market in the coming time, as it predicted in mid-October.