JPMorgan: SEC and CFTC-led Crypto Regulation Lacks Long-Term Viability

JPMorgan has diagnosed that crypto regulation led by the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) following the failure of the Clarifying Law in the U.S. Senate lacks long-term viability.

According to a report published on cryptocurrency-focused media CryptoBriefing on January 17 (local time), JPMorgan analysts Kenneth Worthington and others stated that while SEC and CFTC could fill regulatory gaps through their own rules, such measures risk reversal under future administrations.

The analysts noted that if regulatory actions are overturned, the crypto industry's long-standing demand for legally grounded regulatory clarity may remain unmet. JPMorgan clarified that the legislative session is not yet concluded, so the Clarifying Law has not been entirely abandoned, but expressed a pessimistic outlook, noting the bill's passage probability had dropped to approximately 6.6% by year-end after the Senate vote failure.