JPMorgan analysts expect that the CLARITY Act, which defines the structure of the cryptocurrency market in the US, may be passed by mid-year. According to experts, the adoption of the law will be a significant step in the development of the industry and will provide the long-awaited regulatory clarity for market participants.
This is reported by Business • Media
Main advantages of the CLARITY Act for the crypto market
According to JPMorgan’s estimates, the implementation of the CLARITY Act will serve as a positive catalyst for the entire crypto industry. Experts note that the law is intended to end the practice of “regulation by enforcement” and provide clear rules for market participants.
“If passed, it will change the market structure by ensuring regulatory clarity, putting an end to ‘regulation by enforcement’, promoting tokenization, and expanding the participation of institutional investors,” they stated.
JP Morgan analysts highlight eight key positive aspects of the new bill:
- Classification of tokens. The CLARITY Act proposes to divide digital assets into commodities under the jurisdiction of the US Commodity Futures Trading Commission (CFTC) and securities under the oversight of the US Securities and Exchange Commission (SEC).
- Grace period for startups. New projects will be able to raise up to $75 million per year without full registration with the SEC, which will support innovation and venture activity in the country.
- Ability to change token status. After achieving sufficient decentralization, digital assets may change their status from securities to commodities, stimulating the development of secondary trading and simplifying access for institutional investors.
- Clear rules for crypto intermediaries. The law establishes registration and asset custody requirements for cryptocurrency intermediaries.
- Facilitation of financial instrument tokenization. Tokenized assets will remain under existing securities regulations.
- Exemptions for miners and developers. At the development stage without custodial activities, they may be exempt from mandatory broker reporting.
- Tax clarifications. The bill proposes exemptions for small crypto payments and defines taxation rules for staking, which will enhance transparency and encourage the use of cryptocurrencies.
- Competition between stablecoins and deposits. The proposed provisions may make tokenized deposits more attractive and increase competition with stablecoins.
Prospects for passage and market reaction
Analysts believe that if the CLARITY Act is passed, the market will gain new momentum for development, and the participation of institutional investors will significantly expand due to transparent rules and new opportunities. At the same time, earlier discussions of the bill have already faced difficulties due to the position of the banking lobby, which has affected the search for compromise.