Investment bank JPMorgan (JPM) said in a Wednesday research report, as expectations for a more benign regulatory environment in the US demand an increase in the number of crypto companies that are about to be made public and venture capital (VCs).
Progress in the Senate's genius law has become “a key factor in predicting a clearer, supportive regulatory environment,” writes an analyst led by Nikolaos Panigirtzoglou.
“This forecast for a US regulatory environment encourages crypto corporate activities, such as IPOs and VC funding,” the author writes.
The US National Innovation Guidelines and the established US National Innovation (Genius) Act require federal regulation of stubcoins at a market capitalization of more than $10 billion with potential state regulations, if consistent with federal rules.
Stablecoins are cryptocurrencies that have value in other assets, such as US dollars and gold. They play a major role in the cryptocurrency market and are also used to transfer money internationally.
The bank noted that the number of Crypto IPOs so far this year coincides with the product pace seen in the bull market in 2021.
More crypto companies are preparing for IPOs this year, including Ripple, Kraken, Consenys and Coindesk owner Bullish, according to the report.
Venture capital funding is also rising, exceeding the level seen on an annual basis in 2023/24, the bank said.
ipos gives crypto investors a way to diversify their exposure to digital assets beyond Bitcoin
BTC$105,702.70
and ether
ETH$2,553.64
two largest cryptocurrencies by market capitalization. This means opportunities are available in areas such as blockchain infrastructure, payments and payments, custody and tokenization, and more, the report added.
read more: Flashbots Veterans raise $20 million to tackle OneBalance for Crypto User Experience
