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US crypto markets may gain a major policy catalyst in 2026 as the proposed CLARITY Act advances in Congress. JPMorgan analysts say approval by mid-year could support stronger market performance in the second half. The bill would define federal oversight for digital assets and reduce legal uncertainty.
JPMorgan says clearer rules could improve sentiment and encourage institutional participation. The outcome matters for exchanges, custody providers, and firms that issue crypto products. Supporters say the bill would create a clearer compliance framework by defining digital commodities and digital securities.
Moreover, critics and industry leaders continue to debate stablecoin rewards, consumer protections, and ethics rules. Those unresolved issues still affect the timeline.
JPMorgan analysts say US market-structure legislation could pass by mid-year. They also expect it to act as a positive catalyst later in 2026. Their view states that clear rules can reduce uncertainty and make compliance easier to assess. In addition, many institutions want that clarity before increasing crypto exposure.
The CLARITY Act would assign tokens to SEC or CFTC oversight under a defined framework. That decision affects listings, disclosures, supervision, and legal obligations. It directly shapes how issuers and trading platforms operate. The bill also covers fundraising thresholds and sets conditions for classification changes as networks become more decentralized.
JPMorgan also points to longer-term effects beyond price movement. It says legal clarity could support tokenization and broader institutional use cases. A more predictable US regulatory structure could help both areas expand. That is why traders and crypto companies continue to track the bill closely.
The bill now faces its main test in the Senate, where several disputes remain unresolved. One major issue involves stablecoin rewards. Banking groups warn these incentives could draw deposits away from traditional institutions. Crypto firms argue that the same features help competition and customer growth.
Senate discussions have also slowed after objections to earlier draft language. A planned committee discussion was postponed in January. A major crypto exchange executive criticized parts of the draft and said some provisions could limit innovation. Lawmakers responded by continuing talks and keeping the text open to revision.
US officials have also pressed for progress on crypto regulation. The Treasury Secretary urged Congress in February to act this spring. That added pressure for a compromise, but disagreements continue. As a result, the bill remains active, yet unfinished.
Also Read: 3 Key Things Crypto Investors Should Know About the Senate’s Clarity Act
Analysts expect the strongest effect to come from lower legal risk. A clearer federal framework could help institutions review crypto exposure more confidently. That includes asset managers, pension funds, and corporate treasuries. Faster compliance decisions could support larger allocations over time.
Altcoins also remain in focus because token classification influences exchange support and product access. Market participants are watching how the final bill treats widely traded crypto assets. The final language will matter, and agency implementation will matter as well.
Bitcoin remains central to this policy story. BTC trades in the mid-$60,000 range as traders monitor Washington. Price moves still reflect macro and geopolitical risks. They also show how closely the market follows US crypto legislation.
