JPMorgan Says SEC, CFTC-Led Crypto Regulation Lacks Durability After Clarity Act Senate Vote Failure
Summary
- JPMorgan said cryptocurrency regulation led by the SEC and CFTC lacks long-term durability after the Clarity Act failed in a Senate vote.
- JPMorgan analysts said that even if the SEC and CFTC fill the regulatory gap, those measures could be reversed by the next administration, making it harder to secure statutory regulatory clarity.
- JPMorgan added that while the congressional session has not yet ended, the odds of the Clarity Act passing before year-end fell to about 6.6% after the failed vote.
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JPMorgan said cryptocurrency regulation driven by the Securities and Exchange Commission and the Commodity Futures Trading Commission lacks long-term durability after the Clarity Act failed in a procedural vote in the U.S. Senate.
Crypto-focused outlet Crypto Briefing reported on September 17 that JPMorgan analysts including Kenneth Worthington wrote in a recent report that the SEC and CFTC could use their own rulemaking to fill the regulatory gap. But those steps could be reversed by the next administration.
Such a reversal would make it harder for the crypto industry to secure the statutory regulatory clarity it has sought for years.
JPMorgan said the Clarity Act has not been fully derailed because the current congressional session has not yet ended. Still, the bank called the outlook bleak and said the odds of the bill passing before year-end fell to about 6.6% after the failed vote.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.