JPMorgan warns delays to CLARITY Act could hurt US crypto market

JPMorgan analysts cautioned that each day the CLARITY Act’s passage is postponed, the greater the threat to cryptocurrency markets. They argue that prolonged uncertainty may cause tokenization and blockchain‑based applications to be absorbed by incumbent financial infrastructure rather than fostering public crypto networks.

The proposed legislation would split oversight between the SEC and CFTC, creating a clearer regulatory framework for crypto intermediaries, tokenized securities and decentralized projects. Proponents say this would boost institutional investment, increase U.S.–regulated trading and encourage banks, brokers, exchanges and custodians to enter the market. JPMorgan highlighted recent developments such as the CFTC’s approval of the first regulated perpetual futures contracts and Citadel Securities’ $400 million stake in Crypto.com as signs of growing participation.

Despite bipartisan support in the House, the bill has stalled in the Senate amid Democratic concerns over conflicts of interest tied to former President Donald Trump’s crypto holdings. Senate Majority Leader John Thune indicated no vote is expected before the Senate reconvenes on Aug. 7, and the upcoming midterm elections make a fall vote unlikely. JPMorgan warned that continued delays could undermine confidence and hinder the sector’s growth.