JPMorgan, the US-based multinational investment bank, has published a report focusing on the bankruptcy of FTX and its causes and implications. According to the report, JPMorgan sees the fall of FTX as a “major short-term setback'.
In the report, JPMorgan predicts that the fall of FTX, which had widespread repercussions, will possibly accelerate the timeline for regulation in the cryptocurrency ecosystem. JPMorgan states that both the regulators and the politicians are on the same page about the need for a regulatory framework for cryptocurrencies.
In the report, it is stated that the regulations are beneficial for the ecosystem for two reasons. Firstly, the regulations would help institutional investors to join the ecosystem. JPMorgan wrote that the cryptocurrency regulations are a key catalyst for a massive increase in institutional adoption. Secondly, JPMorgan believes that the regulations are a key to unleash the potential of blockchain. Thus, it is pointed out in the report that the regulations are a necessary catalyst to help bring the power of blockchain to the masses.
JPMorgan also stated that the problems in the cryptocurrency field are caused by centralized players. The following statement was included in the report:
“Moreover, while the news of the collapse of FTX is empowering crypto skeptics, we would point out that all of the recent collapses in the crypto ecosystem have been from centralized players and not from decentralized protocols.”
