Clarity Act Delay Could Threaten Cryptocurrency Market: JPMorgan

According to global financial institution JPMorgan, further delays in the CLARITY Act could threaten the larger cryptocurrency market. According to a report by JPMorgan analyst Nikolaos Panigirtzoglou, “The longer the approval of the Clarity Act is postponed, the greater the threat to crypto markets from the growth of tokenization and blockchain-based applications eventually being absorbed by incumbent market infrastructure rather than accruing to public crypto networks.”

Will The Pro-Cryptocurrency Clarity Act See The Light Of Day?

Promoting the cryptocurrency sector was one of the President Trump’s most significant promises during his Presidential campaign. Trump said that he wanted to make the US a global crypto hub. The Clarity Act aims to further push his vision for the cryptocurrency sector. The legislation aims to bring more regulatory clarity and investor protection.

While many lawmakers are in support of the CLARITY Act, other are asking for more ethical language that bars people in office from profiting from cryptocurrencies. This comes in a time when wallets associated with President Trump have made more than $1 billion in profit from cryptocurrencies. There is a chance that the act may not be passed amid rising questions. The decision could pivot to either direction. It hinges on the demands around wanting more ethics language. Investment bank Jefferies has also said that the act faces challenges despite clearing the Senate Banking Committee.

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