JPMorgan Says SEC, CFTC-Led Crypto Regulation Lacks Staying Power After Clarity Act Senate Setback

Forecast Trend Report by Period

JPMorgan said cryptocurrency regulation driven by the Securities and Exchange Commission and the Commodity Futures Trading Commission lacks long-term sustainability after the Clarity Act failed to advance in a procedural vote in the U.S. Senate.

Crypto Briefing reported on Sept. 17 that JPMorgan analysts led by Kenneth Worthington said in a recent report that the SEC and CFTC could use their own rulemaking to fill the regulatory gap. But those steps could be reversed by the next administration.

That, the analysts wrote, could make it difficult for the crypto industry to achieve the statutory regulatory clarity it has sought for years if regulators' actions are later rolled back.

JPMorgan said the Clarity Act has not been completely derailed because the current congressional session has not yet ended. Still, the bank took a pessimistic view of the outlook, adding that the probability of the bill passing before year-end fell to about 6.6% after the failed vote.