JPMorgan analysts warn that delayed crypto legislation risks shifting tokenization to incumbent infrastructure. SEC's Atkins says agency ready to act if Congress fails.
Alpha Score of 64 reflects moderate overall profile with moderate momentum, moderate value, moderate quality, moderate sentiment.
JPMorgan analysts warned Thursday that Senate delays on the CLARITY Act threaten to push tokenization and blockchain-based finance into the hands of incumbent banks and exchanges rather than public crypto networks.
"The longer the approval of the CLARITY Act is postponed, the greater the threat to crypto markets from the growth of tokenization and blockchain-based applications eventually being absorbed by incumbent market infrastructure rather than accruing to public crypto networks," the analysts wrote in a note cited by CoinDesk.
The CLARITY Act would split digital-asset oversight between the Securities and Exchange Commission and the Commodity Futures Trading Commission, giving crypto intermediaries clearer rules for tokenization and custody. The analysts said that framework would inspire institutional investment and expand regulated U.S. trading. The legislation would also open the door for banks and exchanges to enter the space.
Some of that shift is already visible. The CFTC approved the first regulated perpetual futures contracts in June. Citadel Securities took a $400 million stake in Crypto.com earlier this month.
The analysts flagged a risk within the bill itself. Certain sections could weaken institutional participation by allowing some tokenized securities and derivatives to trade outside direct government oversight, and by imposing lighter anti-money laundering rules than traditional finance requires, they said.
The CLARITY Act cleared the House last year with bipartisan support. The Senate Banking Committee advanced it in May. Since then the measure has stalled, partly because of conflict-of-interest concerns tied to President Donald Trump's crypto holdings. Senate Majority Leader John Thune (R-S.D.) told reporters last week he does not expect a floor vote before the August recess, which starts Friday. Midterm elections make a fall vote less likely.
SEC Chairman Paul Atkins told CNBC on Thursday his agency is prepared to act if Congress does not.
"Statute is a way of future-proofing something. We're ready, willing and able to issue rules that address the same issues in CLARITY and other issues in the crypto market, and I think it behooves us to do that," Atkins said. "Should something not happen in Congress, then we stand ready to provide that."
JPMorgan's Alpha Score sits at 63 out of 100, a Moderate rating. The stock traded at $350.85, up 1.78% on the session.
Drafted by a large language model from the source reporting linked above, then screened by automated publishing checks. It is not read by a journalist before publication. Some articles cite our Alpha Score. Verify prices and figures against the original source. Educational coverage, not personalized advice.