JPMorgan: US Crypto Regulations Unlikely to Ease Despite SEC Legal Defeats

Global investment bank JPMorgan has warned investors that U.S. crypto regulations are unlikely to ease, even though the Securities and Exchange Commission (SEC) has lost several recent court cases against crypto firms. "It is far from clear that the regulatory tightening of the crypto industry will lessen significantly going forward given how unregulated this industry is," said JPMorgan's analysts.

JPMorgan Sees Continued Crypto Regulatory Tightening

JPMorgan's analysts explained in a note last week that cryptocurrency regulations in the U.S. are unlikely to ease even after the U.S. Securities and Exchange Commission (SEC) lost several legal battles against crypto firms.

Citing optimism in the crypto space regarding the approval of spot bitcoin exchange-traded funds (ETFs) by the SEC, the JPMorgan analysts cautioned that a spot bitcoin ETF approval does not signal a complete regulatory shift toward the crypto industry. Citing two legal cases where the courts ruled against the securities regulator in favor of Ripple Labs and Grayscale Investments, the investment bank detailed:

While this year's Ripple vs SEC and Grayscale vs SEC court rulings represent legal defeats for the SEC, it is far from clear that the regulatory tightening of the crypto industry will lessen significantly going forward given how unregulated this industry is.

"We do not believe U.S. lawmakers would shift their stance because of the above two legal cases, especially with the memories from the FTX fraud still fresh," they stressed, emphasizing that crypto regulations in the U.S. are "still pending."

The JPMorgan analysts further noted that the recent BTC rally is "rather overdone," adding that the drivers behind the crypto's bullishness, such as the expected approval of spot bitcoin ETFs by the SEC and the halving, may have little impact on bitcoin.

Spot Bitcoin ETFs and the Crypto Sector

While many in the crypto industry anticipate that spot bitcoin ETFs will drive demand for BTC, enticing traditional investors to enter the space, JPMorgan analysts remain unconvinced that these ETFs will infuse new capital into the crypto sector. Instead, they expect spot bitcoin ETFs to draw investment from existing bitcoin products, including Grayscale's bitcoin trust (GBTC), upcoming ETFs, and bitcoin mining firms. The investment bank's note states:

We envisage this shift as a relative value trade as several of the above bitcoin products trade at a premium or much reduced discount relative to the past.

SEC Chairman Gary Gensler recently revealed that the regulator is considering between eight and 10 spot bitcoin ETF applications. JPMorgan said in September that it expects the SEC to approve multiple spot bitcoin ETFs at once. Microstrategy's chairman and a vocal proponent of bitcoin, Michael Saylor, has predicted that the demand for BTC will double following the halving and the approval of spot bitcoin ETFs.

What do you think about JPMorgan's bitcoin outlook and do you think U.S. crypto regulations will ease after the SEC lost against Ripple and Grayscale? Let us know in the comments section below.

Frequently Asked Questions

How do you withdraw from an IRA that holds precious metals?

First, you must decide if you wish to withdraw money from your IRA account. Next, ensure you have enough cash on hand to pay any penalties or fees that could be associated with withdrawing funds.

An IRA is not the best option if you don't mind paying a penalty for early withdrawal. Instead, open a taxable brokerage. If you decide to go with this option, you will need to take into account the taxes due on the amount you withdraw.

Next, figure out how much money will be taken out of your IRA. The calculation is influenced by several factors such as your age at withdrawal, the length of time you have owned the account and whether or not you plan to continue contributing to retirement plans.

Once you determine the percentage of your total saved money you want to convert into cash, then you need to choose which type IRA you will use. Traditional IRAs let you withdraw money tax-free after you turn 59 1/2, while Roth IRAs require you to pay income taxes upfront but allow you access the earnings later without paying any additional taxes.

Once these calculations have been completed you will need to open an account with a brokerage. Brokers often offer promotional offers and signup bonuses to encourage people into opening accounts. It is better to open an account with a debit than a creditcard in order to avoid any unnecessary fees.

When you do finally decide to withdraw from your precious metallic IRA, you will need a safe space where you can safely store your coins. Some storage facilities can accept bullion bar, while others require you buy individual coins. Before you choose one, weigh the pros and cons.

Because you don't have to store individual coins, bullion bars take up less space than other items. But, each coin must be counted separately. However, individual coins can be stored to make it easy to track their value.

Some people like to keep their coins in vaults. Others prefer to place them in safe deposit boxes. You can still enjoy the benefits of bullion for many years, regardless of which method you choose.

How much gold should your portfolio contain?

The amount of money you need to make depends on how much capital you are looking for. A small investment of $5k-10k would be a great option if you are looking to start small. As your business grows, you might consider renting out office space or desks. You don't need to worry about paying rent every month. Only one month's rent is required.

Consider what type of business your company will be running. In my case, I run a website-creation company. Our clients pay us between $1000-2000/month and depending on their order. This is why you should consider what you expect from each client if you're doing this kind of thing.

Because freelance work pays freelancers, you won't likely get a monthly income if you do freelance work. So you might only get paid once every 6 months or so.

Before you can determine how much gold you'll need, you must decide what type of income you want.

I suggest starting with $1k-2k gold and building from there.

Can the government steal your gold?

You own your gold and therefore the government cannot seize it. You have earned it by working hard for it. It belongs to your. But, this rule is not universal. If you are convicted of fraud against the federal government, your gold can be forfeit. You can also lose precious metals if you owe taxes. However, even if taxes are not paid, gold is still your property.

Can I hold physical gold in my IRA?

Not only is gold paper currency, but it's also money. People have been using gold for thousands of years to store their wealth and protect it from economic instability and inflation. Today, investors invest in gold as part a diversified portfolio. This is because gold tends do better in financial turmoil.

Today, Americans prefer precious metals like silver and gold to stocks and bonds. Although owning gold does not guarantee that you will make money investing in it, there are many reasons to consider adding gold into your retirement portfolio.

One reason is that gold historically performs better than other assets during financial panics. Gold prices rose nearly 100 percent between August 2011 and early 2013, while the S&P 500 fell 21 percent over the same period. During turbulent market conditions gold was one of few assets that outperformed stock prices.

Another advantage of investing in gold is that it's one of the few assets with virtually zero counterparty risk. Even if your stock portfolio is down, your shares are still yours. However, if you have gold, your value will rise even if the company that you invested in defaults on its loans.

Gold provides liquidity. This means that, unlike most other investments, you can sell your gold anytime without worrying about finding another buyer. It makes sense to buy small quantities of gold, as it is more liquid than other investments. This allows you take advantage of the short-term fluctuations that occur in the gold markets.


  • If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (
  • Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (
  • Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (
  • This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (
  • If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (

External Links

How To

Guidelines for Gold Roth IRA

Start saving as soon as possible to save for your retirement. Start saving as soon as possible, usually at age 50. You can continue to save throughout your career. You must contribute enough each year to ensure that you have adequate growth.

You also want to take advantage of tax-free opportunities such as a traditional 401(k), SEP IRA, or SIMPLE IRA. These savings vehicles allow you the freedom to contribute without having to pay tax on your earnings until they are withdrawn. These savings vehicles are great for those who don't have access or can't get employer matching funds.

It is important to save consistently over time. If you aren't contributing the maximum amount permitted, you could miss out on tax benefits.


By: Kevin Helms
Title: JPMorgan: US Crypto Regulations Unlikely to Ease Despite SEC Legal Defeats
Sourced From:
Published Date: Mon, 13 Nov 2023 01:00:54 +0000

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