JPMorgan Sees Downside for Crypto Markets as CLARITY Act Odds Plummet
A recent analysis from JPMorgan has highlighted that the reduced likelihood of key US cryptocurrency market structure legislation advancing this year could exert downward pressure on the sector's broader prospects.
The CLARITY Act, which seeks to clarify regulatory responsibilities by placing digital commodities under the Commodity Futures Trading Commission (CFTC) and keeping digital securities with the Securities and Exchange Commission (SEC), has seen its chances of becoming law decline significantly.
Market-based forecasts now place the probability of the bill becoming law before the end of 2026 at approximately 37 percent on one prediction platform and about 26 percent on another, the weakest readings recorded this year.
JPMorgan analysts noted that lower chances for the CLARITY Act represent a setback for digital asset markets, and that particular aspects of the current draft risk discouraging institutional involvement.