The expectations of a more benign regulatory environment in the United States lead to an increase in the number of cryptographic companies that seek to become public and an increase in fund funding (VC), JPMorgan (JPM) Investment Bank (JPM) said in a research report on Wednesday.
The progress of the law on engineering in the Senate has become a “key factor to anticipate a clearer and more favorable regulatory environment”, wrote analysts led by Nikolaos Panigirtzoglou.
“The anticipation of such an American regulatory environment is conducive to the activity of cryptographic companies such as IPOs and VC funding,” wrote the authors.
The law on the orientation and establishment of national innovation of the Senate for the Stablescoins (Engineering) law obliges federal regulations for stablescoins with a market capitalization of more than $ 10 billion with the potential for state regulation if it aligns the federal rules.
Stablecoins are cryptocurrencies whose value is linked to another asset, such as US dollar or gold. They play a major role in the cryptocurrency markets and are also used to transfer money internationally.
The Bank noted that the number of cryptographic stock exchange until now is this year corresponds to the rate of offers seen on the Haussier market of 2021.
Press reports suggest that more crypto companies, including Ripple, Kraken, Connys and the owner of Coindesk, are preparing for the IPO this year, according to the report.
The funding of venture capital is also increasing and exceeded the levels observed in 2023/24, on an annualized basis, said the bank.
The IPOs give crypto investors a way to diversify their exposure to digital assets beyond the simple bitcoin
And Ether, the two largest cryptocurrencies by market capitalization. This means that they can take advantage of opportunities in areas such as blockchain infrastructure, payments and regulations, custody and tokenization, added the report.
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