JPMorgan says SEC-CFTC-led crypto rules may lack staying power after Clarity Act setback

JPMorgan said the best path to comprehensive crypto regulation has stalled in the Senate, and a regulator-led fallback centered on the U.S. SEC and CFTC may not prove durable, according to Crypto Briefing. In a recent report, JPMorgan analysts including Kenneth Worthington said some expect the SEC and CFTC to fill the regulatory gap left by the failed cloture vote on the Clarity Act through their own rulemaking, but cautioned such measures could be reversed by the next administration. If that happens, the crypto industry would lose the bill-based regulatory clarity it has spent years lobbying to secure, the analysts said. They added that the Clarity Act has not technically been abandoned because the current congressional session has not yet ended, but the outlook remains pessimistic. After the vote failed, the odds of the Clarity Act passing before year-end fell sharply to about 6.6%, the report said.