Regulatory measures partially offset the impact of the stalled Clarity Act; JPMorgan says political and legal risks remain

Odaily report: JPMorgan analyst Nikolaos Panigirtzoglou stated in a report that recent measures taken 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 still persist. 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. Before a comprehensive market structure bill is passed, the political and legal risk premium will remain elevated; if Democrats win the White House, existing measures could potentially be overturned within two years.

Panigirtzoglou believes that the likelihood of the Clarity Act passing this year is low, and it may be delayed until 2027. Currently, crypto market sentiment remains relatively optimistic, with the market focused on what measures the SEC, CFTC, and OCC will take to facilitate institutional entry into the cryptocurrency space.