JPMorgan Chase stated that further delays to the U.S. Crypto Markets Structure Act (CLARITY Act) could diminish the potential benefits of open crypto networks in the next round of financial infrastructure upgrades. The bank believes that the longer the delay, the more likely tokenization and blockchain applications are to be absorbed into the traditional market system rather than integrated into the open blockchain ecosystem.
JPMorgan Chase focuses on changes in market attribution.
In a report, JPMorgan analyst Nikolaos Panigirtzoglou pointed out that if the approval of the bill continues to be delayed, market growth may flow more towards platforms and clearing systems dominated by existing financial institutions. As a result, blockchain technology will still expand, but this may not directly benefit public encrypted networks and their native assets.
This reflects, to some extent, Wall Street's concern about "who will take the lead in tokenization growth." If the regulatory framework is delayed, banks, custodians, and traditional trading infrastructure may find it easier to dominate.
The bill's progress still faces political obstacles.
Currently, while many members of the U.S. Congress support the CLARITY Act, the bill still faces controversy regarding additional clauses. Some members are demanding the inclusion of clearer ethical restrictions to prevent sitting officials from profiting from crypto assets.
The report mentions that this debate is related to the cryptocurrency rewards associated with Trump's wallets. As questions intensify, the bill's passage remains uncertain. Jefferies previously stated that although the bill has passed the Senate Banking Committee, further progress faces obstacles.
Institutional Funding Expectations and Market Confidence
JPMorgan believes that if the bill is ultimately passed, the US crypto industry is likely to attract more institutional funding and drive the expansion of regulated trading activity. Barriers to entry faced by banks, exchanges, custodians, and market makers may also decrease.
The bank also anticipates that retail investor confidence may improve as a result. A key market focus is whether a clear regulatory framework can bring more stable capital inflows to the US crypto market and increase participation in the public blockchain ecosystem within the tokenization trend.
Judging from the current statements, the significance of the CLARITY Act is not just a single legislative advancement, but also relates to whether the future growth of the US crypto market will remain more on the public network or be taken over by on-chain infrastructure dominated by the traditional financial system.
