US CLARITY Act Likely to Pass by Mid-Year, JPMorgan Signals Major Crypto Shift

The US crypto market may be closer to attaining regulatory clarity after years of uncertainty and debate. JPMorgan analysts believe that the proposed CLARITY Act will receive approval by mid-2026, bringing a major transformation to the digital asset industry.

JPMorgan Signals Mid-Year Approval for CLARITY Act

Recent reports show that JPMorgan makes a strong prediction about the US CLARITY Act passing before mid-2026. The market structure bill, which aims to introduce a comprehensive regulatory framework for the crypto industry, may boost the market in the second half of the year, states JPMorgan.

According to JPMorgan, two major issues are slowing down the bill. The first is how stablecoin yields could be handled. While crypto companies support the idea of providing rewards to stablecoin holders, banks warn that this could attract deposits away from traditional financial institutions.

The second issue is the conflict of interest. Democrats are advocating for regulations that would prohibit all senior government officials, including the President, and their family members from having crypto links.

The White House has reportedly held multiple meetings to discuss the crypto bill. But these ongoing debates have stalled any progress in the CLARITY Act passage.

While Patrick Witt, Executive Director of the President’s Council of Advisors for Digital Assets, previously hinted at a possible resolution in February, industry experts stated that the March 1 deadline appeared unlikely. As projected, March 1 passed without any significant announcements or advancements regarding the CLARITY Act, as negotiations continue.

Can the Bill Reverse the Ongoing Market Crash?

Despite the ongoing crypto market crash, JPMorgan analysts maintain their positive outlook about the upcoming CLARITY Act, which they believe will transform the industry. They hope the market structure bill will serve as a major driving force, propelling the crypto market forward. Thus, they posit that the market will recover and surge in the second half of 2026 after the passage of the crypto bill.

As per the report released by the analysts, led by managing director Nikolaos Panigirtzoglou, the passage of the CLARITY Act could shift the current momentum of the market. The report read,

“While sentiment remains negative in crypto markets, we continue to believe that a potential approval of the market structure legislation most likely by mid year could serve as a positive catalyst for crypto markets into the second half of the year.”

In essence, JPMorgan sees regulatory clarity as a potential turning point that could help stabilize crypto prices and improve market outlook later this year.