JPMorgan Predicts U.S. CLARITY Act Could Be Major Crypto Catalyst

A recent research report from JPMorgan Chase has given the cryptocurrency industry a massive reason to be optimistic about the second half of 2026. 

Analysts predict that if the U.S. CLARITY Act passes by mid-year, it will be a powerful catalyst for institutional adoption.

As reported by U.Today, JPMorgan previously predicted that Bitcoin could end up hitting $170,000 if it were valued as gold. 

The stablecoin yield battle 

After clearing the House with bipartisan support, the market structure bill has hit a massive wall in the Senate.

Two contentious debates have complicated its passage and stalled negotiations.

There is a fierce battle over stablecoin yield treatment, which has pitted native crypto platforms against traditional banking institutions.

Cryptocurrency exchanges of the likes of Coinbase want the legal right to offer “rewards” or “yield” to users who hold stablecoins (like USDC) on their platforms. 

They argue this is a necessary feature for digital asset utility and a massive revenue driver for the industry.

Traditional banks have lobbied aggressively against this, warning that stablecoins could turn into unregulated bank deposits. 

Banks warn this could trigger “deposit flight,” which could destabilize the traditional credit system.

The White House has attempted to mediate this dispute by proposing compromises, and negotiations are ongoing. 

Current industry predictions

If lawmakers and lobbyists can find a middle ground on stablecoin yields and ethical limits by mid-year, JPMorgan analysts believe the floodgates will open. 

Ripple CEO Brad Garlinghouse recently stated there is an 80% to 90% probability that the CLARITY Act will pass by the end of April 2026.

Coinbase CEO Brian Armstrong, who is believed to be primarily responsible for stalling the bill, is also optimistic about its eventual passage.