JPMorgan analysts anticipate the proposed CLARITY Act could serve as a catalyst for the U.S. crypto sector by mid-2026, providing regulatory clarity and boosting institutional adoption. The bill aims to replace enforcement-driven policies with clear token classifications and defined oversight roles, potentially enhancing tokenization and real-world asset issuance. Key debates delaying the bill's passage include stablecoin yield permissions and conflict-of-interest limits for officials. Despite these challenges, JPMorgan maintains a positive outlook, suggesting that regulatory clarity could improve institutional participation and offer benefits like clearer tax treatment for small transactions. The bank views the CLARITY Act as a structural shift for the crypto market.