Key Takeaways
- Digital asset prices remain stable with Bitcoin hovering in the mid-$60,000 zone and Ethereum trading near $2,000 amid subdued market activity.
- According to JPMorgan analysts, passage of the Clarity Act could serve as a significant market driver during 2026’s second half.
- The proposed legislation would establish dual regulatory authority, dividing crypto supervision between the SEC and CFTC while permitting projects to raise $75 million with simplified registration.
- Legislative progress has been hampered following Coinbase’s withdrawal of endorsement due to concerns about stifling innovation and market competitiveness.
- In parallel developments, Morgan Stanley is pursuing OCC approval for a federal trust charter dedicated to digital asset custody services.
The cryptocurrency market has experienced prolonged consolidation, with Bitcoin maintaining a tight trading corridor around the mid-$60,000 level for several weeks. Ethereum continues circling the $2,000 mark while trading activity remains subdued across leading platforms. Market participants are searching for a meaningful development to break the current stalemate.
Analysts at JPMorgan believe they’ve identified a potential catalyst. In a newly released research note, a team headed by Nikolaos Panigirtzoglou highlighted the Clarity Act — pending legislation designed to establish clearer crypto market rules in the United States — as a possible driver for renewed momentum in the latter half of the year.
“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 research team noted.
The proposed framework would establish a bifurcated regulatory system, assigning oversight responsibilities to both the Commodity Futures Trading Commission and the Securities and Exchange Commission. Digital tokens would receive classification as either commodities or securities based on their fundamental characteristics.
According to JPMorgan’s analysis, placing prominent cryptocurrencies under CFTC supervision would significantly decrease regulatory ambiguity. A grandfathering provision would enable specific tokens — such as XRP, Solana, Litecoin, Hedera, Dogecoin, and Chainlink — to receive commodity classification if connected to spot exchange-traded funds launched prior to January 1, 2026.
Additionally, the legislation would permit emerging crypto ventures to secure up to $75 million in annual funding without completing comprehensive SEC registration procedures, provided they meet transparency requirements. JPMorgan’s research team suggested this provision could reinvigorate domestic token launches and venture capital activity that has increasingly migrated to foreign jurisdictions.
Legislative Progress Encounters Obstacles
Despite optimistic projections, the bill has encountered significant roadblocks. A scheduled Senate Banking Committee review was delayed in early 2026 following Coinbase‘s decision to rescind its backing. The leading U.S. cryptocurrency platform expressed concerns that the legislation’s current language might hinder technological advancement, diminish market competition, and impose restrictions on stablecoin reward programs.
Coinbase’s chief executive Brian Armstrong attributed the delays primarily to banking industry trade associations rather than individual financial institutions. The proposed legislation currently remains in legislative limbo while policymakers negotiate contentious elements.
Simultaneously, traditional finance institutions are advancing their digital asset strategies independently. Morgan Stanley has submitted documentation to the Office of the Comptroller of the Currency requesting authorization for a national trust banking charter. The planned entity, designated as Morgan Stanley Digital Trust National Association, would operate from Purchase, New York.
Morgan Stanley Expands Digital Asset Infrastructure
Upon receiving regulatory approval, the subsidiary would provide custody solutions for digital assets, facilitate token transactions associated with client portfolios, and deliver staking capabilities. The entity would operate without accepting deposits or extending credit facilities.
With approximately $9 trillion under management, Morgan Stanley initiated its cryptocurrency involvement by introducing Bitcoin investment vehicles to wealth advisory clients in 2021. The firm subsequently broadened digital asset trading capabilities through its E*Trade division in 2025.
In January 2026, the institution submitted applications for spot exchange-traded funds covering Bitcoin, Solana, and Ethereum, while appointing Amy Oldenburg to lead digital asset strategic initiatives. A federally regulated trust bank would enable the firm to internalize custody and staking operations, diminishing dependence on external service providers such as Zerohash.
The OCC’s public feedback window extends until March 20, 2026. Upon approval, Morgan Stanley would join established players including BNY Mellon and State Street in the federally chartered digital asset custody space.
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