JPMorgan Sees Crypto Upside if CLARITY Act Passes

JPMorgan says U.S. crypto markets could see a boost in H2 2026 if Congress passes the CLARITY Act, bringing clearer rules for digital assets.

Crypto markets may be entering a quiet period, yet major institutions argue that the second half of the year could bring renewed momentum.

A new research note from JPMorgan states that digital assets may see a boost if US lawmakers approve the CLARITY Act by midyear, as the bill continues advancing through Congress.

Regulatory Push Gains Pace in Congress

JPMorgan said the CLARITY Act could reshape the digital asset market once it becomes law, as the bill seeks to create clear rules for crypto activity.

It has already passed in the House, and the bank noted that its progress in the Senate is slower because lawmakers are attempting to address gaps in earlier legislation.

The CLARITY Act forms part of a broader effort to build a federal structure for digital assets after President Donald Trump signed the Genius Act last year.

That measure established a path for issuing stablecoins, although many officials argue that trading rules still require more detail and coordination.

A key topic in ongoing discussions is how stablecoin platforms should operate under federal supervision.

Lawmakers and regulators are examining the issue as part of the broader market-structure framework that is now under review.

Stablecoin Rewards Remain a Major Dispute

The bill also faces debate over whether crypto firms such as Coinbase should be allowed to pay rewards on stablecoin balances.

Banks have expressed concern that stablecoin yields may draw funds away from deposits and could stress parts of the financial system if balances move quickly between platforms.

Coinbase Chief Executive Brian Armstrong withdrew support for the bill in January after raising objections to the draft text.

The company and other industry members have since held more meetings with the White House and congressional offices to find a compromise.

Armstrong said last week that “I believe we’re going to reach a win-win-win outcome. ,” indicating that discussions remain active.

Stablecoins are a growing part of the digital asset market, and policymakers are looking for ways to manage their expansion while ensuring trading rules remain consistent across platforms.

This has made reward structures a central issue in the legislative talks.

Related Reading: JPMorgan: Regulatory Clarity to Ignite Crypto Boom H2 2026

Market Outlook Hinges on Legislative Progress

JPMorgan said a midyear approval of the bill could help revive investor interest after the sharp market drop that followed Bitcoin’s record high above $126,000 last October.

The bank noted that the current environment remains cautious, although a structured regulatory approach may draw institutions back into the market.

Matt Hougan, chief investment officer at Bitwise Asset Management, said crypto downturns usually end with low sentiment rather than strong excitement.

He added that Bitcoin appears to be forming a bottom, although the recovery process may take time and could see more volatility.

The bank added that a completed regulatory framework could support tokenization efforts and expand institutional access to digital assets.

JPMorgan said this could become a key factor for market performance in the second half of 2026 if the CLARITY Act becomes law.

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