From Yahoo Finance · · 1m 10s
JPMorgan Warns Crypto Rules Can Be Overturned
JPMorgan says agency crypto rules may be reversed in court, raising concerns about XRP's regulatory risk after CLARITY Act fails.
In brief
JPMorgan says agency crypto rules may be reversed in court, raising concerns about XRP's regulatory risk after CLARITY Act fails. JPMorgan warns agency crypto rules can be overturned in court, making XRP more vulnerable than Bitcoin as the CLARITY Act fails in Congress. Originally reported by Yahoo Finance.
JPMorgan's Warning
JPMorgan warned clients that agency crypto rules are less durable than legislation because courts or a future Commission can reverse them.
“JPMorgan warned clients that agency crypto rules are less durable than legislation because courts or a future Commission can reverse them”
CLARITY Act Fails
On September 15, the U.S. Senate blocked the cloture motion to advance the CLARITY Act bill, failing by 49-50 votes.
“On September 15, the U.S. Senate blocked the cloture motion to advance the CLARITY Act bill, failing by 49-50 votes”
Industry Fallback Plan
Some industry leaders pointed to agency rules as a fallback if Congress could not deliver new regulations.
“some of the industry's biggest names, including Atkins, Selig, Armstrong, Saylor and Garlinghouse, pointed to the same fallback”
JPMorgan's Durability Concern
JPMorgan questioned how durable agency rule clarity would be without Congress putting it into law.
“JPMorgan still recognized that clearer agency rules could support crypto prices, but questioned how durable that clarity would be without congress putting it into law”
Bernstein's View
Bernstein described the CLARITY Act as a 'fool-proof shield for the industry against future political shifts'.
“Bernstein described the CLARITY Act as a 'fool-proof shield for the industry against future political shifts'”
XRP's Regulatory Risk
XRP carries the highest regulatory reversal risk with legal standing resting entirely on a reversible SEC-CFTC interpretation.
“XRP carries the highest regulatory reversal risk, with its legal standing resting entirely on a reversible SEC-CFTC interpretation rather than statute”
Bitcoin's Safety
Bitcoin faces no plausible agency reversal path, making it the least exposed hold across a presidential transition.
“Bitcoin faces no plausible agency reversal path, making it the least exposed hold across a presidential transition compared to XRP or Ethereum”
The one thing
JPMorgan warns agency crypto rules can be overturned in court, making XRP more vulnerable than Bitcoin as the CLARITY Act fails in Congress.
