Bitcoin remains rangebound as traders weigh the potential impact of regulatory changes, and JPMorgan analysts say the Clarity Act could serve as a decisive catalyst for the crypto market by providing regulatory clarity and encouraging institutional participation. The framework would define oversight between the CFTC and SEC and classify tokens as either digital commodities or securities, helping to reduce regulatory uncertainty. If clear rules were established, large asset managers, pension funds, and corporate finance departments could expand exposure based on trusted compliance.
The grandfather clause would allow certain tokens connected to physical ETFs to be treated as commodities under specified conditions, including XRP, Solana, Litecoin, Hedera, Dogecoin, and Chainlink. A separate provision could permit fundraising up to $75 million per year without full SEC registration.
Nevertheless, months of debate have stalled in the Senate, and Coinbase publicly withdrew its support, signaling a divide in industry opinion. Still, some analysts and banking executives believe a clear regulatory path remains a key driver that could sustain momentum for tokenization and broader market liquidity. If enacted, the act could deepen liquidity, compress volatility, and spur new product development across tokenized assets.
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