JPMorgan Says Clarity Act Could Lift Crypto Prices This Year
- JPMorgan says the Clarity Act could become the regulatory spark crypto markets now lack.
- The bill could reduce uncertainty by splitting oversight between the SEC and the CFTC.
- Senate delays and Coinbase pushback still leave the bill’s near-term path unresolved.
Crypto markets remain stuck in a narrow range as traders search for a decisive trigger, with Bitcoin hovering in the mid-$60,000s, Ether near $2,000, and exchange volumes thinning across major platforms. JPMorgan analysts now point to proposed U.S. market structure legislation, known as the Clarity Act, as a potential catalyst that could shift momentum later this year.
In a recent research note, a team led by Nikolaos Panigirtzoglou said approval of the bill by midyear could support prices. “We continue to believe that a potential approval of the market structure legislation, most likely by midyear, could serve as a positive catalyst for crypto markets,” the team wrote.
Their view arrives as sentiment remains fragile and price action reflects hesitation rather than conviction.
Clarity Act and Regulatory Framework
The Clarity Act seeks to define oversight between the Securities and Exchange Commission and the Commodity Futures Trading Commission. It would classify digital assets as securities or digital commodities based on their core characteristics.
Under the proposal, major cryptocurrencies could fall under CFTC supervision. JPMorgan said that shift would reduce regulatory ambiguity and lower compliance burdens tied to SEC oversight.
The bill also contains a grandfather clause. It would grant commodity status to tokens linked to spot exchange-traded funds launched before January 1, 2026. Those tokens include XRP, Solana, Litecoin, Hedera, Dogecoin, and Chainlink. According to JPMorgan, this provision could bring greater certainty to projects already connected to ETF products. Clear jurisdictional lines could also reshape how firms approach issuance and trading activity in the United States.
In addition, the proposal would allow emerging crypto ventures to raise up to $75 million each year without full SEC registration. Projects would still meet disclosure requirements. JPMorgan’s team said that funding window could revive domestic token launches and venture capital activity that has shifted overseas in recent years.
Senate Stalemate and Industry Divisions
Despite support from some analysts and banking voices, progress on the bill has stalled in the Senate. Lawmakers have debated key provisions for months without reaching a final agreement. A scheduled Senate Banking Committee markup in early 2026 was postponed. The delay followed Coinbase’s public withdrawal of support for the legislation.
Coinbase said the current text could hamper innovation, weaken competition, and restrict features such as stablecoin rewards. The company’s stance exposed divisions among industry participants and lawmakers.
Banking trade groups prevented market structure legislation negotiations from progressing while Banks served as the secondary party. The ongoing negotiations remain uncertain because both the timing and final language remain undecided.
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Institutional Moves and Market Impact
Meanwhile, institutional activity continues to evolve alongside the legislative debate. Morgan Stanley has moved deeper into digital assets through a planned federally chartered trust subsidiary.
If approved, the subsidiary would custody digital assets, support token transfers tied to client investments, and offer staking services. It would not take deposits or issue loans. Morgan Stanley manages about $9 trillion in client assets. The firm began offering Bitcoin investment funds to wealth management clients in 2021.
It later expanded crypto trading through its E*Trade platform in 2025. In January 2026, the bank filed for spot Bitcoin, Solana, and Ethereum exchange-traded funds. It also named Amy Oldenburg as head of digital asset strategy. A federally chartered trust bank could allow Morgan Stanley to handle custody and staking in-house. That shift could reduce reliance on third-party providers such as Zerohash.
