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JPMorgan confirms crypto bill may have only a narrow window for passage this year

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JPMorgan says crypto bill may have only a narrow window for passage this year.

The timeline for the crypto market structure bill's passage this year is getting narrower, JPMorgan analysts said, as the U.S. midterm elections approach, the stablecoin yield debate continues, and key hurdles remain.

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"With the U.S. midterms approaching, the legislative window for passage of the market structure bill (Clarity Act) has narrowed, which could postpone progress on crypto market-structure reform this year," JPMorgan analysts led by managing director Nikolaos Panigirtzoglou said in a Wednesday report. However, the legislative path has become more difficult. "Timing may also prove pivotal, as a pre-midterm compromise could differ meaningfully from a post-midterm version as political incentives shift," the analysts added. A key sticking point is how the bill treats stablecoin yield, or whether crypto platforms should be allowed to pay interest-like rewards on stablecoins.

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