Clarity Act Passage Could Spark Crypto Rally, JPMorgan Predicts

JPMorgan analysts believe that passage of the Clarity Act could be a significant catalyst for crypto markets, leading to a potential rally. The bill would split oversight of digital assets between the Commodity Futures Trading Commission and the SEC, reducing compliance burdens and legal uncertainty for market participants.

The current regulatory ambiguity has left institutional investors cautious about deploying new capital, resulting in thin volumes across major exchanges. However, if the legislation advances, it could provide a clearer framework for large asset managers, pension funds, and corporate treasuries to increase their allocations.

JPMorgan notes that a grandfather clause in the bill would allow certain tokens tied to spot exchange-traded funds listed before January 1, 2026, including XRP, Solana, Litecoin, Hedera, Dogecoin, and Chainlink, to be treated as commodities. This could revive onshore issuance and venture activity that has moved abroad.