The banking industry is far from complaining about the supposedly low popularity of digital assets. In particular, at the end of April 2023, analysts at Standard Chartered said that the so-called crypto-zima, the stage of collapse of the coin market, was over. On top of that, they predicted Bitcoin to rise to $100,000 during 2024.

A little later, analysts at investment bank H.C. Wainwright joined them. According to them, the worst for digital assets is over. In addition, the experts highlighted the potential of cryptocurrency exchange Coinbase, which is now struggling with the US Securities and Exchange Commission’s approach to coin regulation. The platform has also announced the launch of an international exchange, which is not intended for US residents due to the peculiarities of local legislation.

What’s going on with cryptocurrencies?

One of the conclusions of a report from analysts at JPMorgan is that pressure from US regulators is leading to a high likelihood of cryptocurrency businesses exiting to other countries. Here’s a pertinent rejoinder cited by Coindesk.

US-based Binance has cancelled its deal with Voyager, while Coinbase has launched Coinbase International, a crypto exchange for derivatives outside the US. These are pre-emptive measures in response to growing pressure from US regulators.


This week, analysts at Bloomberg acknowledged that the current activity by regulators in the US is creating problems for cryptocurrency companies. However, they also concede that the current situation could benefit the coin niche if Commission officials finally decide to engage in proper regulation of the coin industry.


So far, the cryptosphere has only faced bans, but regulators still don’t have a clear definition of even the industry’s fundamentals. For example, the Securities and Futures Exchange Commission (SEC) has not yet decided on the status of Etherium, although the current chairman of the regulator clearly stated several years ago that the cryptocurrency is not a security.

Regulatory restrictions also “deter institutional investors from investing in cryptocurrencies” – and so they buy gold rather than Bitcoin. This is reflected in the precious metal’s exchange rate. The day before, the price of gold per ounce reached an all-time high.

At the same time, investors are hedging their risks against the background of a possible intensification of the banking crisis in the USA, as the major banks of the country continue to slip into collapse one after the other. Most interestingly, similar news did not cause the crypto market to fall in March, except to spur the rise in the value of Bitcoin and other digital assets.

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Meanwhile, New York Attorney General Letitia James has proposed a new state law to tighten regulations on cryptocurrency companies for consideration. If passed, New York should require an independent public audit of cryptocurrency exchanges and at the same time prohibit certain people from owning brokerage companies and tokens at the same time. This is necessary to prevent conflicts of interest.

The measure, which must first be passed by state lawmakers, would also require cryptoplatforms to reimburse customers who have been victims of fraud, and would strengthen the authority of the New York State Department of Financial Services to regulate digital assets.

Accordingly, if an exchange floods a token whose developers later turn out to be fraudsters, then investors will be entitled to claim damages. Naturally, this would affect the activity of trading platforms. Alternatively, some of them will leave the jurisdiction because the framework is too rigid and the liability is too high.

According to Bloomberg sources, James filed a lawsuit against cryptocurrency exchanges CoinEx and KuCoin a few months ago. She claimed that the companies failed to properly register their operations in New York. Another lawsuit against cryptocurrency companies Nexo Inc. and Nexo Capital Inc. led in January to a settlement of up to the equivalent of $24 million for New York and nine other states.


The comments from analysts at JPMorgan Bank should provide a further argument for US officials, who are in a position to influence Securities Commission policy. It is clear that the SEC's actions are not only chasing talent and capital out of the United States, but they are slowing the development of an industry that is likely to be the future of finance. So instead of creating problems for the niche, the regulator needs to encourage the popularisation of coins and at the same time develop an adequate framework for the digital asset industry. This would also encourage big investors, who are not yet very keen on interacting with crypto.