JPMorgan expects cryptocurrency prices to rise in the second half of the year. According to analysts, the key prerequisite for this bullish scenario is the adoption of comprehensive market-structure legislation in the United States by mid-year, Bloomberg reports.
The bank notes that such legislation would provide long-awaited regulatory clarity and put an end to the controversial practice of “regulation by enforcement.” At the same time, it would accelerate tokenization efforts and significantly lower the barriers for institutional investors entering the crypto market.
At the center of the discussion is the so-called CLARITY Act, which has already passed the House of Representatives and has become a cornerstone of the U.S. Congress’s broader crypto-regulation push. Progress in the Senate, however, has recently slowed, as lawmakers debate how to close loopholes in the related Genius Act.
Expectations of a more crypto-friendly second Donald Trump administration pushed Bitcoin to an all-time high above $126,000 last October. That surge, however, was followed by a sharp correction, marked by billions of dollars in outflows from Bitcoin ETFs and six consecutive “red” monthly candles.
March 1 marks a key White House deadline. By that date, negotiations between the crypto industry and the banking sector are expected to deliver tangible results. U.S. Treasury Secretary Scott Bessent has indicated that the legislation could be signed by the end of spring.
On prediction market Polymarket, the probability of the bill passing this year is currently estimated at around 70%. Market observers stress that completing the process before the midterm elections this autumn is critical, as potential Republican losses could shift the balance of power toward Democrats who are more skeptical of cryptocurrencies.
