JPMorgan says delays to U.S. Clarity Act add downside pressure to crypto

JPMorgan said delays to the U.S. Clarity Act, a market structure bill for cryptocurrencies, are adding downside pressure to the crypto market as the chances of Senate passage this year decline, according to CoinDesk. In a recent report, JPMorgan said the Clarity Act had been expected to establish a clear regulatory framework for crypto and encourage banks and asset managers to enter the market. But as the bill’s progress stalls, one of the market’s key bullish catalysts is weakening, the bank said. Prediction markets now put the odds of the Clarity Act passing this year at 37%, it added. JPMorgan also warned that the longer congressional passage is delayed, the greater the risk that the benefits of growth in tokenization and blockchain-based applications will be absorbed by traditional financial market infrastructure rather than public crypto networks.