The timeline for the crypto market structure bill's passage this year is getting narrower, JPMorgan analysts said, as the U.S. midterm elections approach, the stablecoin yield debate continues, and key hurdles remain.
"With the U.S. midterms approaching, the legislative window for passage of the market structure bill (Clarity Act) has narrowed, which could postpone progress on crypto market-structure reform this year," JPMorgan analysts led by managing director Nikolaos Panigirtzoglou said in a Wednesday report. The analysts had previously said that passage of the bill would likely act as a positive catalyst for crypto markets in the second half of this year.
However, the legislative path has become more difficult. The bill cleared the Senate Banking Committee on May 14, but still needs 60 votes in the full Senate, reconciliation with the House, and a presidential signature, "leaving several high-friction steps outstanding," the analysts said.
"Timing may also prove pivotal, as a pre-midterm compromise could differ meaningfully from a post-midterm version as political incentives shift," the analysts added.
Crypto bill hurdles
