The cryptocurrency market and the exchange will benefit from Binance’s settlement with the US government, JPMorgan (JPM) stated in a recent research report.
The exchange’s agreement “would see significant reduction of a potential systemic risk emanating from a hypothetical Binance collapse,” the report stated, with implications for the larger market. Additionally, according to analysts led by Nikolaos Panigirtzoglou, it supports the “ongoing shift towards regulated crypto entities and instruments which has been the objective of U.S. authorities post-FTX’s collapse.”
This move towards regulated cryptocurrency businesses and products is a good thing, the note stated, adding that the Securities and Exchange Commission’s (SEC) approval of spot bitcoin ETFs was made possible in part by the participation of major asset managers like Fidelity and Blackrock (BLK).
According to JPMorgan, the agreement will also help the crypto exchange’s trading and BNB Smart Chain businesses by lowering uncertainty around it. Due to the uncertainty surrounding this matter, it was observed that Binance has been losing market share.
“Its market share loss should be contained going forward and perhaps partly reverse once the implications from the settlement on Binance’s operations and business model become more clear,” the analysts wrote.