JPMorgan sees shrinking window for U.S. crypto market structure overhaul
JPMorgan says the Clarity Act may face a narrow chance of passing this year because the midterm election calendar is tightening and stablecoin yield remains unresolved. The bill still needs a full Senate vote, House reconciliation, and presidential approval, while banking-industry opposition is growing. Timing matters because a deal reached before versus after the midterms could look very different. The bill is a key crypto priority because it would create a federal framework for digital assets and clarify SEC vs. CFTC oversight. The main sticking point is whether stablecoins can pay passive yield. JPMorgan says the intent is to ban interest-like payments on balances while allowing activity-based rewards, but the text is not explicit enough, creating political and legal uncertainty. If passive yield is limited, capital may move more into tokenized Treasuries, digital money-market funds, and tokenized deposits.
