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JPMorgan: Regulatory measures partially offset the impact of the Clarity Act's failure, but political and legal risks remain.

PANews ·  Oct 23 08:44

PANews reported on October 23 that, according to The Block, JPMorgan analyst Nikolaos Panigirtzoglou stated in a report that recent actions by U.S. regulators have to some extent offset the negative impact of the Senate's failure to advance the Clarity Act, but political and legal risks still remain.

The report notes that measures led by agencies such as the SEC, CFTC, and OCC can encourage institutional participation in the crypto ecosystem in the short term, but only legislation can make the regulatory framework more sustainable. Until the Comprehensive Market Structure Act is enacted, political and legal risk premiums will remain elevated. For now, the crypto industry must rely on a patchwork of ad hoc regulatory measures, which could be reversed within as little as two years if Democrats win the White House.

Analysts believe the Clarity Act is unlikely to pass this year and may be delayed until 2027. For now, crypto market sentiment remains relatively optimistic, with investors focusing on what steps the SEC, CFTC, and OCC might take to make it easier for institutions to enter the cryptocurrency space.

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