JPMorgan States Clarity Act May Boost Bitcoin (BTC) and Cryptocurrency Markets in 2026

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TLDR

  • Bitcoin has been trading within a narrow range around the mid-$60,000 mark, while Ether is hovering near $2,000—with thin trading volumes across leading exchanges.
  • JPMorgan indicates that the Clarity Act, should it be enacted, could act as a major catalyst for crypto markets in the second half of 2026.
  • The Clarity Act would split regulatory oversight of cryptocurrencies between the SEC and CFTC, and allow new projects to raise up to $75 million without full SEC registration.
  • The bill has stalled in the Senate after Coinbase withdrew its support, citing concerns over innovation and competition.
  • Morgan Stanley has applied for a federal trust bank charter to custody digital assets, expanding its crypto strategy under OCC oversight.

For several weeks, Bitcoin has remained confined to a tight trading range close to the mid-$60,000 level. Ether is trading at approximately $2,000, and volumes across major exchanges have dwindled. Traders are seeking a trigger to break this stagnation.

Bitcoin (BTC) Price

JPMorgan analysts believe they’ve found such a catalyst. In a recent report, a team led by Nikolaos Panigirtzoglou pointed to the Clarity Act—a proposed U.S. crypto market structure bill—as a potential trigger for a second-half rally.

“We continue to believe that a potential approval of the market structure legislation most likely by mid year could serve as a positive catalyst for crypto markets,” the analysts wrote.

The bill would divide crypto oversight between the Commodity Futures Trading Commission and the Securities and Exchange Commission. Tokens would be classified as either digital commodities or securities based on their nature.

JPMorgan noted that placing major tokens under CFTC jurisdiction would reduce legal uncertainty. A grandfather clause would allow certain tokens—including XRP, Solana, Litecoin, Hedera, Dogecoin, and Chainlink—to be treated as commodities if tied to spot ETFs listed before January 1, 2026.

The bill would also permit new crypto projects to raise up to $75 million annually without full SEC registration, subject to disclosure rules. JPMorgan analysts said this could revive onshore issuance and venture funding that has shifted overseas.

Clarity Act Hits a Wall

Despite its potential, the bill has stalled. A Senate Banking Committee markup was postponed in early 2026 after Coinbase, the largest U.S. crypto exchange, withdrew its support. Coinbase stated the current text could limit innovation, weaken competition, and restrict stablecoin rewards.

Coinbase CEO Brian Armstrong said banking trade groups were largely responsible for the delays, not individual banks. The bill now sits in limbo as lawmakers work through disagreements on key provisions.

Meanwhile, Wall Street isn’t waiting around. Morgan Stanley has filed an application with the Office of the Comptroller of the Currency for a national trust bank charter. The proposed entity, Morgan Stanley Digital Trust National Association, would be based in Purchase, New York.

Morgan Stanley Goes All-In on Crypto Custody

If approved, the subsidiary would custody digital assets, support token transfers linked to client investments, and offer staking services. It would not take deposits or issue loans.

Morgan Stanley manages around $9 trillion in client assets. The firm began offering crypto investment funds to wealth management clients in 2021 and expanded crypto trading through its E*Trade platform in 2025.

In January 2026, it filed for spot Bitcoin, Solana, and Ethereum ETFs and named Amy Oldenburg as head of digital asset strategy. A federally chartered trust bank could bring custody and staking in-house, reducing reliance on third-party providers like Zerohash.

The OCC’s public comment period runs through March 20, 2026. If approved, Morgan Stanley would enter a field that already includes BNY Mellon and State Street.