Despite the current prevailing caution and pessimism among investors, JPMorgan expects the crypto market to make a significant recovery in the second half of this year if US lawmakers approve comprehensive legislation to structure the market by mid-year.
According to Bloomberg, the bank said in a research note that the introduction of these laws will strengthen “coding” operations and encourage broader institutional participation in crypto assets, as well as reshaping the market structure by clarifying regulations and eliminating the “judicial enforcement” approach.
The Clarity Act, approved by the House of Representatives, is part of a broader push within Congress to launch a comprehensive regulatory framework for digital assets. But the bill has been delayed in the Senate due to disagreements among lawmakers over how to respond to the Guinness Act, signed by President Donald Trump as the first federal framework for issuing a stable currency.
Despite the prevailing atmosphere of caution and pessimism among investors, JPMorgan expects the crypto market to see a measurable recovery in the second half of this year if the US passes comprehensive legislation to structure the market by mid-year.
According to Bloomberg, the bank said in a research note that the implementation of these laws will reshape the market structure by clarifying regulations, ending the “regulation by enforcement” approach, strengthening the “tokenization” process, and facilitating broader institutional participation in crypto assets.
The Clarity Act, approved by the House of Representatives, is part of a broader push within Congress to launch a comprehensive regulatory framework for digital assets. However, the bill has been delayed in the Senate due to disagreements among lawmakers over the Gensler Act, which President Donald Trump signed into law as the first federal framework for stablecoin issuance.
