JPMorgan Flags Legislative Risk for Crypto Markets JPMorgan has issued a warning that continued delays to the Digital Asset Market Clarity Act pose a growing threat to the structural integrit
JPMorgan has issued a warning that continued delays to the Digital Asset Market Clarity Act pose a growing threat to the structural integrity of crypto markets. The bank's research team argues that the longer the legislation stalls, the greater the damage to institutional liquidity and the broader deployment of $BTC and $ETH across corporate treasuries.
JPMorgan said falling odds of the Clarity Act passing this year represent a setback for crypto markets and institutional adoption, adding that the legislation would provide regulatory clarity and encourage banks and asset managers to expand into digital assets.
JPMorgan has lowered its estimate for the Clarity Act passing this year to below 50%, down sharply from an earlier 66% probability set in June, citing political uncertainty ahead of the US midterm elections.
The Clarity Act would establish clearer oversight of digital assets by dividing jurisdiction between the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC), while creating a more predictable framework for crypto intermediaries, tokenization and decentralized projects.
By establishing clear rules, the legislation could give banks, brokers, exchanges and asset managers greater confidence to invest, launch products and build market infrastructure, accelerating the migration of trading and liquidity to regulated US venues.
The bank said the window for Congress to pass the Clarity Act this year is narrowing fast, squeezed by the approaching midterm elections and an unresolved fight over whether stablecoins can pay yield.Debate over whether stablecoins can offer yield remains the biggest obstacle, with banks and crypto firms divided on the issue.
The Clarity Act currently sits on the Senate calendar with no floor vote scheduled, and the Senate's August recess deadline means the bill's window for 2026 passage could effectively close very soon.Passage would unlock the next phase of institutional digital asset adoption, while delays would prolong regulatory uncertainty.
Sources:CoinDesk: JPMorgan warns crypto risks losing out as Clarity Act stallsCoinDesk: JPMorgan sees shrinking window for US crypto market structure overhaulCongress.gov: Digital Asset Market Clarity Act (H.R.3633)
