U.S. CLARITY Act Nears Vote-Is Regulatory Chaos Finally Ending?

JPMorgan says U.S. CLARITY Act could pass by mid-2026, aiming to clarify crypto rules, stablecoin yields, and token oversight.

The U.S. crypto industry may soon see clearer federal rules as lawmakers move closer to a vote on the CLARITY Act.

JPMorgan analysts say the bill could pass by mid-2026 and may help ease long-standing uncertainty in digital asset markets.

JPMorgan Sees Mid-Year Path Forward

JPMorgan analysts, led by managing director Nikolaos Panigirtzoglou, expect the CLARITY Act to gain approval by mid-year 2026.

The bank said the legislation could act as a catalyst for crypto markets in the second half of the year. The report noted that sentiment remains weak, yet regulatory progress could shift momentum.

The analysts wrote, “While sentiment remains negative in crypto markets, we continue to believe that a potential approval of the market structure legislation most likely by mid-year could serve as a positive catalyst for crypto markets into the second half of the year.”

The bank pointed to ongoing discussions in Washington as a sign that negotiations are active.

The White House has reportedly held several meetings on the bill. However, earlier expectations for progress in March were not met.

Talks continue as lawmakers address unresolved sections of the proposal.

Key Debates: Stablecoins and Ethics Rules

Two major issues remain under discussion. One centers on whether stablecoin issuers can offer yield to holders.

Crypto firms support yield-bearing stablecoins, yet banks argue that such products could draw deposits away from traditional institutions.

Another issue concerns conflict-of-interest limits for public officials.

Some lawmakers seek restrictions that would bar senior government officials and their families from holding or promoting crypto assets.

These provisions remain under review as part of the broader negotiations.

Lawmakers are also discussing how the bill would define oversight roles between agencies.

The proposal aims to clarify which tokens fall under securities or commodities laws. Clear classifications may reduce disputes between regulators and market participants.

Related Reading: JPMorgan Sees Crypto Upside if CLARITY Act Passes

Market Structure and Institutional Access

The CLARITY Act proposes a structured framework for token issuance and trading.

It may introduce lighter registration pathways for new crypto projects. The bill could also define rules for intermediaries such as exchanges and brokers.

The legislation may support tokenization of real-world assets, including bonds and deposits.

Analysts say clearer rules could encourage banks and asset managers to expand blockchain-based services.

Institutional tokenized deposits may receive formal recognition under the framework.

Tax provisions are also under discussion. The bill may provide guidance on small crypto transactions and staking rewards.

Market participants say defined tax treatment could reduce compliance risks. If approved, the law may offer a clearer operating environment for digital assets in the United States.

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