JPMorgan: Clarity Act Failure Leads to SEC/CFTC-Driven Regulation with Sustainability Concerns

JPMorgan has diagnosed that the best path to comprehensive cryptocurrency regulation, the Clarity Act, failed in the Senate, and even a fallback approach centered on regulatory agencies may not last. According to CryptoBriefing, JPMorgan analysts Kenneth Worthington and others stated in their latest report that while the SEC and CFTC might fill the regulatory gap through their own rules, this could be reversed by the next administration, potentially stripping the crypto industry of years of lobbying efforts aimed at securing a legislative framework for clear regulation. They added that although the congressional session has not ended technically, prospects are bleak: the Clarity Act's chance of passing before year-end dropped sharply to about 6.6% after its defeat.