- The bill aims to replace enforcement-driven policy with clear token classifications and defined oversight roles.
- Key debates include stablecoin yield permissions and conflict-of-interest limits for officials.
- Analysts led by Nikolaos Panigirtzoglou see regulatory clarity boosting tokenization and institutional adoption.
Amid persistent sell-off fears across digital asset markets, analysts at JPMorgan Chase say U.S. lawmakers may soon break a long regulatory stalemate. The bank said the proposed CLARITY Act could pass by mid-2026. The report frames the bill as a potential second-half catalyst for the U.S. crypto sector.
Mid-Year Timeline and Policy Scope
According to JPMorgan, the CLARITY Act aims to establish a comprehensive market structure for digital assets in the United States. The legislation would replace years of what analysts describe as regulation by enforcement. Notably, the bill seeks clearer token classifications and defined roles for intermediaries.
The report added that approval could arrive by mid-year, following extended negotiations in Washington. JPMorgan analysts said the framework would also support tokenization of real-world assets. In addition, it could provide lighter registration requirements for early-stage crypto projects.
Key Debates Slowing Progress
However, JPMorgan highlighted two unresolved issues delaying passage. First, lawmakers continue debating whether stablecoins should be allowed to offer yield. Crypto firms favor rewards, while banks warn of deposit outflows.
Second, conflict-of-interest rules remain contentious. Democrats have pushed to bar senior government officials and family members from holding crypto ties. According to the report, these disagreements have slowed legislative momentum.
The White House has reportedly hosted several meetings on the bill. Meanwhile, Patrick Witt previously suggested progress in February. Still, a March 1 target passed without public updates.
Market Impact and Analyst Outlook
Despite ongoing market weakness, JPMorgan maintained a constructive outlook. The analysts said regulatory clarity could improve institutional participation later in the year. They also cited benefits such as clearer tax treatment for small transactions and staking.
The report, led by managing director Nikolaos Panigirtzoglou, stated that approval could support tokenized deposits and real-world asset issuance. While sentiment remains cautious, the bank views the bill as a structural shift rather than a short-term fix.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Brazil Pauses Crypto Tax Talks Ahead of October Vote
Brazil has postponed its crypto tax consultation to 2027 due to election pressures, despite implementing a 17.5% capital gains tax and classifying stablecoins as foreign exchange. Crypto adoption remains robust, with significant inflows and growth.
CryptoFrontNews2h ago
Federal Reserve Governor Miran: If secondary inflation effects and wage increases occur, rate hikes may be needed, but there is currently no necessity for rate hikes
Gate News reported that on March 23rd, Federal Reserve Governor Barr stated that rate hikes may be necessary if second-round inflation effects and wage increases occur. However, he also pointed out that he does not currently believe it is necessary to consider rate hikes.
GateNews7h ago
CoinShares: Digital asset investment products saw inflows of $230 million last week, with Bitcoin inflows of $219 million
CoinShares' latest weekly report shows that digital asset investment products saw a net inflow of $230 million last week, but due to the Federal Reserve's hawkish stance, approximately $405 million flowed out following the FOMC. The United States saw inflows of $153 million, Germany $30.2 million, and Switzerland $27.5 million, with Bitcoin dominating inflows. Solana has seen consecutive net inflows for 7 weeks, but Ethereum saw outflows of $27.5 million last week.
GateNews8h ago
CFTC Sets 20% Capital Charge for Bitcoin and Ethereum Collateral
The Commodity Futures Trading Commission (CFTC) has taken a clear step toward integrating cryptocurrencies into traditional finance. In its latest guidance, the regulator allows Bitcoin and Ethereum to be used as collateral in derivatives trading while applying a 20% capital charge to manage
Coinfomania8h ago
Gold Price Plummets 25%! Peter Schiff Points Finger at Fed Missteps, Fate of Safe-Haven Assets Draws Attention
On March 23rd, gold prices plummeted approximately 25%, falling below $4,200 per ounce, with over $10 trillion wiped from market value. Despite tensions between the US and Iran and rising inflation, the market engaged in heated discussions about the reasons for the gold price decline. Analysts pointed out that this selloff may be related to high interest rates and shifts in market sentiment, with future focus on macroeconomic data and the Federal Reserve's policy direction.
GateNews10h ago
Fidelity Urges SEC to Fast-Track Crypto Market Integration
Fidelity says U.S. market infrastructure can support crypto trading under existing laws without building new systems.
Firm backs SEC Crypto Task Force efforts, stressing collaboration to address technical and regulatory challenges.
Integration into regulated systems could expand access
CryptoFrontNews11h ago
