The SEC has filed charges against Coinbase and Binance, two major global crypto exchanges, which will have significant implications for the future of cryptocurrencies. JPMorgan has released a research report examining the potential impact of this legal conflict on the formation of US crypto regulations.

The report suggests that the lack of clear legal guidance in this area is highlighted by the ongoing Ripple case, and that urgent action is needed to implement a comprehensive regulatory framework.

If the SEC's stance is adopted, US crypto exchanges would be required to register as brokers and most cryptocurrencies would be treated as securities, bringing about increased transparency and investor protection.