Expectations for a more benign regulatory environment in the United States lead to an increase in the number of cryptic companies that want to become public and a boost in venture capital (VC) financing, Investment Bank JPMorgan (JPM) said in a research report on Wednesday.
Genius Act’s progress in the Senate has become a “key factor in anticipating a clearer and more supportive legislative environment,” wrote analysts led by Nikolao’s Panigirtzoglou.
“The expectation of such a US legislative environment is conducive to crypto business activity such as IPOs and VC financing,” wrote the authors.
Senate’s guidance and the establishment of the National Innovation for US StableCecoins (Genius) Act mandates Federal regulation for stablecoins with a market capital of more than $ 10 billion with the potential for state regulation if it is in accordance with federal rules.
Stableecoins are cryptocurrencies whose value is bound to another asset, such as the US dollar or gold. They play an important role in cryptocurrency markets and are also used to transfer money internationally.
The bank noted that the number of crypto -exchange listings so far this year matches the pace of offers seen in the bull market in 2021.
Press releases suggest that several cryptic companies, including Ripple, Kraken, Consenys and Coindesk’s owner Bullish are getting ready for stock exchange listing this year, the report says.
Venture capital financing is also increasing and has exceeded levels seen by 2023/24 on an annual basis, the bank said.
IPOs give cryptoinvestors a way of diversifying their digital asset exposure beyond just Bitcoin
And ether, the two largest cryptocurrencies after market capital. This means that they can benefit from opportunities in areas such as blockchain infrastructure, payments and settlement, custody and tokenization, the report added.
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