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

BlockBeats news, October 23 — JPMorgan analyst Nikolaos Panigirtzoglou said in a report that recent actions by U.S. regulators have partially offset the negative impact of the Senate's failure to advance the Clarity Act, but political and legal risks remain. The report noted 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 durable. Until a comprehensive market structure bill is passed, the political and legal risk premium will remain elevated. Currently, the crypto industry can only rely on a series of fragmented regulatory measures, and if Democrats win the White House, these measures could be overturned in as little as two years."

The analyst believes the probability of the Clarity Act passing this year is low and that it may be delayed until 2027. Crypto market sentiment remains relatively optimistic, with the market focused on what measures the SEC, CFTC, and OCC can take to make it easier for institutions to enter the cryptocurrency space. (The Block)