JPMorgan analysts say U.S. crypto market structure legislation could be approved by mid-year and serve as a positive catalyst for markets in the second half, identifying eight specific provisions that could reshape the industry.
The Mid-Year Approval Timeline
JPMorgan analysts led by Nikolaos Panigirtzoglou said the CLARITY Act could be approved by mid-year despite weak crypto sentiment, The Block reported on Sunday.
“If passed it will reshape market structure by providing regulatory clarity, ending ‘regulation by enforcement,’ promoting tokenization, and facilitating greater institutional participation,” the analysts wrote.
The House has already advanced the legislation while Senate discussions continue. Two major sticking points remain: stablecoin yield treatment and conflict-of-interest restrictions for senior government officials and their families.
On stablecoin yield, crypto firms want to offer rewards to users while banks argue this could pull deposits from traditional banking and pose financial stability risks.
The White House has hosted multiple closed-door meetings between crypto industry representatives and banking groups.
The Eight Catalysts
First, the token …