Loading… Loading… Loading…
JPMorgan JPM has expressed a positive outlook on the recent settlement between Binance BNB/USD and the U.S. government, highlighting its beneficial impact on both the cryptocurrency sector and the exchange itself, according to a research report released on Thursday.
The report emphasized that the agreement with Binance could significantly diminish systemic risks that might arise from a potential collapse of the exchange, CoinDesk reported.
This development is seen as part of a broader trend towards regulated cryptocurrency entities and instruments, a shift that has gained momentum following the downfall of FTX.
The team of analysts, led by Nikolaos Panigirtzoglou, pointed out this trend.
Also Read:Former Binance CEO's Message To Musk After His Twitter Account Was Temporarily Restricted
Moreover, the move towards regulation in the crypto space is seen as a positive change, particularly in attracting investors from the traditional finance sector.
The involvement of major asset managers like BlackRock BLK and Fidelity in the process of approving spot Bitcoin ETFs by the Securities and Exchange Commission (SEC) is cited as evidence supporting this view.
The settlement is also expected to alleviate uncertainties surrounding Binance, which is anticipated to positively influence its trading operations and the BNB Smart Chain business.
JPMorgan noted that Binance had been experiencing a decline in market share due to these uncertainties.
"Its market share loss should be contained going forward and perhaps partly reverse once the implications from the settlement on Binances operations and business model become more clear,"the analysts state.
Read Next:SEC Commissioner Declares 'No Reason For Us To Stand In The Way' Of Bitcoin ETF: Is Gary Gensler Listening?
Photo: ShutterstockLoading… Loading… Loading…
