JPMorgan Downgrades CLARITY Act Passage Odds Amid Crypto Market Concerns

JPMorgan analysts have downgraded their forecast for the passage of the CLARITY Act, citing fading odds and potential setbacks for crypto markets.

The bank's Nikolaos Panigirtzoglou put the passage odds at just 37%, according to a report cited by CoinDesk. This decline in prospects has raised concerns that traditional finance infrastructure will gain an even greater advantage over public crypto networks if the bill is delayed further.

The Senate still needs to resolve four key issues, including ethics provisions and anti-money laundering requirements, before the CLARITY Act can be passed. JPMorgan warns that these delays could lead to tokenization and blockchain-based applications being absorbed by incumbent market infrastructure instead of contributing to public crypto networks.

Despite this, some momentum is already building around institutional investment in crypto. Citadel Securities' $400 million investment in Crypto.com and the CFTC's approval of US-regulated perpetual crypto futures contracts are seen as examples of this trend.