Bank analysts warn delays in U.S. crypto legislation reduce regulatory clarity, dampening institutional adoption and market growth.
JPMorgan lowered its crypto market outlook after odds of the Clarity Act passing this year fell to 37%. The legislation, seen as a key catalyst for digital assets, would provide regulatory clarity for banks and asset managers to expand into crypto markets.
The Senate prioritized other bills ahead of its summer recess, leaving negotiations deadlocked over ethics provisions, DeFi rules, and stablecoin yield. Analysts noted prolonged delays could shift tokenization and blockchain adoption toward traditional financial infrastructure instead of public networks.
The report highlighted risks of incumbent firms absorbing blockchain applications, potentially sidelining public crypto networks if regulatory uncertainty persists.