JPMorgan: U.S. CLARITY Act likely to pass this year…a catalyst for a crypto rebound in the second half

With sentiment in the cryptoasset (cryptocurrency) market still subdued, JPMorgan pointed to the potential passage of the U.S. crypto market-structure bill, the “CLARITY Act,” as a driver of a rebound in the second half of the year.

According to The Block on the 1st (local time), JPMorgan analysts said in a recent report, “Overall sentiment in the cryptoasset market is negative, but if the CLARITY Act passes around mid-year, it could serve as a positive catalyst for the cryptoasset market in the second half.”

The core of the bill is to establish a comprehensive regulatory framework for cryptoassets in the United States. Progress has already been made in the House, and discussions are continuing in the Senate.

However, two issues are delaying the legislation: △whether to allow stablecoin yield (interest) payments △restrictions on conflicts of interest involving cryptoassets for senior public officials and their families. While banks argue that offering interest or rewards on stablecoins could lead to deposit outflows and undermine financial stability, the industry is calling for user rewards to be permitted.

JPMorgan forecast that if the bill passes, the “regulation by enforcement” approach would ease, and structural changes would emerge, including accelerated tokenization and expanded institutional participation.