Binance and US Authorities Settle: Exchanges and Crypto Will Benefit, Says JPMorgan

Crypto News – JPMorgan (JPM) stated in a research paper on Thursday that Binance’s settlement with the US authorities is advantageous for both the exchange and the cryptocurrency sector.

Binance and US Authorities Settle: Exchanges and Crypto Will Benefit, Says JPMorgan

According to the research, the exchange’s agreement would significantly lower the systemic risk that could arise from a hypothetical Binance collapse for the larger market. According to analysts led by Nikolaos Panigirtzoglou, it also supports the continued trend that US authorities have pursued toward regulated crypto companies and instruments since FTX’s bankruptcy.

JPMorgan Believes Regulation Could Reduce Uncertainties About Crypto Exchange

More regulation will help draw investors away from traditional finance, the note stated, adding that the fact that major asset managers like Fidelity and Blackrock (BLK) were involved in the Securities and Exchange Commission’s (SEC) approval of spot bitcoin ETFs lends credence to this theory. The arrangement, according to JPMorgan, also lessens the uncertainties surrounding the cryptocurrency exchange, which will help its trading and BNB Smart Chain operations. It mentioned that the ambiguity surrounding this matter has caused Binance to lose market share.

Its market share loss should be contained going forward and perhaps partly reverse once the implications from the settlement on Binance’s operations and business model become more clear,

the analysts