The proposed act is widely viewed as a cornerstone for the next phase of institutional crypto adoption. By establishing clear rules for digital assets, the legislation could give banks, brokers, exchanges and asset managers greater confidence to invest, launch products and build market infrastructure, accelerating the migration of trading and liquidity to regulated U.S. venues.
JPMorgan analysts said the legislation would encourage institutional investment, boost U.S.-regulated trading and lower barriers for banks, exchanges, custodians and market makers.
Some of those trends are already emerging, the bank said, citing Citadel Securities’ $400 million investment in Crypto.com and the CFTC’s approval of the first U.S.-regulated perpetual crypto futures contracts.
The report cautioned, however, that parts of the current draft could deter institutional participation by allowing some tokenized securities and derivatives trading outside SEC or CFTC oversight and imposing lighter anti-money laundering requirements than those faced by traditional financial firms.
Investment bank Jefferies warned that the Clarity Act still faces significant hurdles despite clearing the Senate Banking Committee, according to a report last month.
Read more: Jefferies warns of crypto market volatility as Clarity Act faces Senate test
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