JPMorgan warns fading Clarity Act hurts crypto outlook

• JPMorgan said the weakening chances of the Clarity Act could weigh on cryptocurrency markets.
• The bank said regulatory uncertainty may slow institutional investment in digital assets.
• The Clarity Act faces a narrowing path through the US Senate before the congressional recess.

JPMorgan said the declining chances of the Clarity Act passing this year could weaken the outlook for the cryptocurrency market.

The bank said uncertainty over US digital asset rules could delay institutional investment and keep pressure on market sentiment.

JPMorgan said the bill faces several hurdles, including disagreements over stablecoin rules and limited time before Congress begins its summer recess.

The bank said failure to pass the legislation this year would leave the industry without a clear market structure framework.

The Clarity Act is designed to establish rules for digital assets and define how US regulators oversee different parts of the cryptocurrency market.

Senate leaders have indicated the bill is unlikely to pass before the summer recess, reducing its chances of becoming law in 2026.