JP Morgan Says SEC Could Force Crypto Exchanges to Register

Following recent action taken by the regulator, JP Morgan says that the US Securities and Exchange Commission (SEC) could eventually force crypto exchanges to register. JP Morgan strategists led by Nikolaos Panigirtzoglou have warned the cryptocurrency community that centralized crypto exchange platforms might soon be forced to comply with stricter regulations.

JPMorgan strategists suggest that United States-based cryptocurrency exchanges, including Coinbase and Binance.US, may face regulatory pressure to register with the Securities and Exchange Commission. This potential shift comes as the SEC intensifies its scrutiny of the digital asset space.

The SEC in 2025 proposed requiring some crypto firms to register as alternative trading systems, drawing criticism from the sector in the face of potentially restrictive rules. The SEC is dropping its plan to force some crypto firms to register as alternative trading systems (ATS) after heavy industry backlash. Acting Chairman Mark Uyeda spoke on the shifting regulatory landscape.

This possible requirement builds upon existing regulatory frameworks. Under Section 17A(c)(1) of the Exchange Act, a transfer agent that performs any of these 3(a)(25) Activities with respect to a security that is registered under the Exchange Act must comply with specific regulations. The application of these regulations to crypto assets remains a key point of contention and ongoing discussion.