Binance’s settlement with the US government is good for both the crypto industry and Binance, JPMorgan said in a research report on November 23.
For the industry as a whole, the settlement “results in a significant reduction in the potential systemic risks arising from Binance’s failure,” the report said. Analysts led by Nikolaos Panigirtzoglou also said the move reinforces “the continued transition to regulated crypto-asset entities and financial products that has been a goal of U.S. authorities following the collapse of FTX.” It is written that.
This shift to regulated crypto-asset companies and products is a positive change, the report says, as it helps attract investors from traditional finance, adding that the U.S. Securities and Exchange Commission (SEC) It added that the involvement of major asset managers such as BlackRock and Fidelity in approving spot exchange-traded funds (ETFs) supports this claim.
According to JP Morgan, this settlement will reduce the uncertainty surrounding Binance and benefit trading and BNB Smart Chain business. JP Morgan noted that Binance is losing market share due to the uncertainty surrounding this issue.
“The market share decline should be contained going forward, and perhaps even partially reversed, as the impact of the settlement on Binance’s operations and business model becomes clearer,” the analysts wrote.
｜Translation: CoinDesk JAPAN
｜Edited by: Toshihiko Inoue
｜Original text: Binance’s Settlement With US Authorities Is Positive for Crypto as Well as the Exchange: JPMorgan