Share this article
JPMorgan: Lessons Learned From the Crypto Crash
The recent market slump highlights the risks stemming from regulatory shortcomings, the bank said.
By Will Canny
Updated Nov 9, 2022, 4:16 p.m. Published Nov 8, 2022, 5:30 p.m.
Make us preferred on Google
Despite the recent crash in cryptocurrency markets, the technology behind stablecoins – a type of cryptocurrency whose value is pegged to another asset, such as the U.S. dollar or gold – will continue to play an important part in the evolution of the monetary system, JPMorgan (JPM) said in a research report Thursday.
The technologies, tokenization of securities and assets, smart contracts and cryptography, will “transform the future of financial systems,” the report said.
STORY CONTINUES BELOW
As with any new development, “the challenge is to find the right balance between fostering innovation and maintaining financial stability and protection for consumers and investors,” JPMorgan said. The roles of the public and private sector still need to be clearly defined, according to the note.
Policymakers will need to address financial stability risks by improving investor and consumer protection, and by enhancing know-your-customer (KYC) and “identity issue regulation” to stop money laundering and terrorist financing.
“A blue sky regulatory framework is hard to achieve in light of political and technological realities,” the note said. The recent crypto market crash highlights the risks originating from such regulatory shortcomings, it added.
An investor survey conducted by the bank showed that 28% of respondents said crypto would be the worst-performing asset class in 2023, and that 74% expected the bitcoin price to be below $25,000 in six months. Since mid-June bitcoin has mainly been trading between $25,000 and $18,000.
Read more: Crypto Venture Capital Investment Slowed Further in October: JPMorgan
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
Solana’s new phase is ‘much more about finance,’ says Backpack CEO Armani Ferrante
The Solana ecosystem has spent the past year doubling down on a financial infrastructure, Backpack CEO Armani Ferrante told CoinDesk.
What to know:
- Solana’s latest phase looks a lot less flashy than its memecoin-fueled highs, and that may be the goal.
- Armani Ferrante, CEO of crypto exchange Backpack, told CoinDesk in an interview the Solana ecosystem has spent the past year doubling down on a more sober focus: financial infrastructure. A
- fter years of experimentation as the wider crypto industry focused on NFTs, games and social tokens, attention is now shifting back toward decentralized finance, trading and payments.
Top Stories
