JPMorgan sees shrinking window for U.S. crypto market structure overhaul

JPMorgan warns that the U.S. crypto market reform is urgent as Congress faces a shrinking window to pass the Clarity Act, critical for digital asset regulation.

As the legislative clock ticks down, the urgency of reforming the U.S. crypto market structure intensifies. JPMorgan has issued a warning that time is running out for Congress to pass the Clarity Act, a bill seen as essential for the future of digital asset regulation in the United States. What Is the Clarity Act and Why Does It Matter? The Clarity Act is widely regarded as the most significant legislative priority for the cryptocurrency industry. This legislation aims to establish a comprehensive federal framework governing digital assets in the U.S., resolving longstanding uncertainties about whether cryptocurrencies are under the jurisdiction of the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC). According to JPMorgan analysts, the Clarity Act could replace years of regulatory ambiguity with clearer rules for issuers, exchanges, and investors. This clarity is seen as a potential catalyst for increased institutional participation and investment in the crypto space, which in turn could help retain crypto businesses and capital in the U.S. as opposed to migrating to more developed digital-asset regimes overseas. How Is the Midterm Season Affecting the Bill? As the midterm election calendar tightens, the window for passing the Clarity Act in 2026 is narrowing, according to JPMorgan analysts. The bill successfully cleared the Senate Banking Committee on May 14, but it still faces significant hurdles. The next steps require securing 60 votes in the full Senate, reconciling it with House legislation, and ultimately obtaining the president's signature. JPMorgan expressed concerns that as the congressional calendar moves closer to the midterms, the likelihood of timely passage diminishes. The analysts noted, "With the U.S. midterms approaching, the legislative window for passage of the Market Structure Bill has narrowed," suggesting that a compromise reached before elections may look substantially different than one negotiated