TLDR
- Bitcoin (BTC) trades sideways in the mid-$60,000 range while ether hovers near $2,000 amid sluggish exchange volumes.
- JPMorgan identifies the Clarity Act as a significant potential driver for cryptocurrency markets during 2026’s second half.
- The proposed legislation would divide regulatory authority between SEC and CFTC while permitting projects to raise $75 million without complete SEC registration.
- Senate progress has halted following Coinbase’s withdrawal of support due to worries about competitive restrictions and innovation limits.
- Morgan Stanley pursues a federal trust bank charter from the OCC to provide digital asset custody services independently.
Bitcoin has languished in a narrow trading corridor near the mid-$60,000 level for several weeks now. Ether remains anchored around $2,000, while trading activity on prominent exchanges has significantly declined. Market participants are seeking a meaningful catalyst to disrupt this stagnation.
Analysts at JPMorgan believe they’ve identified such a catalyst. In their latest research note, a team headed by Nikolaos Panigirtzoglou highlighted the Clarity Act — proposed legislation addressing U.S. crypto market structure — as a possible spark for gains 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 analysts wrote.
The Clarity Act proposes splitting cryptocurrency regulation between the Securities and Exchange Commission and the Commodity Futures Trading Commission. Digital assets would receive classification as either commodities or securities based on their fundamental characteristics.
According to JPMorgan, transferring major digital assets to CFTC supervision would eliminate substantial regulatory ambiguity. A grandfathering provision within the bill would permit specific tokens — such as XRP, Solana, Litecoin, Hedera, Dogecoin, and Chainlink — to receive commodity treatment provided they’re connected to spot ETFs launched prior to January 1, 2026.
Additionally, the proposed law would enable emerging crypto ventures to secure up to $75 million yearly without undergoing full SEC registration, though disclosure requirements would apply. JPMorgan’s research team suggested this provision might reinvigorate domestic token launches and venture capital activity that has relocated abroad.
Legislative Progress Encounters Obstacles
Despite its potential benefits, the legislation has encountered roadblocks. The Senate Banking Committee delayed a scheduled markup session in early 2026 following Coinbase‘s decision to retract its endorsement. The nation’s largest cryptocurrency exchange expressed concerns that the bill’s current language might stifle innovation, diminish market competition, and place restrictions on stablecoin reward programs.
Coinbase’s CEO Brian Armstrong attributed the postponements primarily to banking industry trade organizations rather than specific financial institutions. The legislation remains suspended as policymakers negotiate contentious elements of the proposal.
In the interim, traditional financial institutions are advancing their crypto strategies. Morgan Stanley has submitted documentation to the Office of the Comptroller of the Currency requesting a national trust bank charter. The planned institution, Morgan Stanley Digital Trust National Association, would operate from Purchase, New York.
Morgan Stanley Advances Digital Asset Custody Plans
Upon approval, the subsidiary would provide custody for digital assets, facilitate token transactions associated with client portfolios, and deliver staking capabilities. The entity would refrain from accepting deposits or originating loans.
Morgan Stanley oversees approximately $9 trillion in client holdings. The financial giant introduced Bitcoin investment products to its wealth advisory clients in 2021 and broadened crypto trading accessibility via its E*Trade platform during 2025.
In January 2026, the firm submitted applications for spot Bitcoin, Solana, and Ethereum ETFs while appointing Amy Oldenburg to lead digital asset strategy initiatives. A federally licensed trust bank would enable Morgan Stanley to handle custody and staking operations internally, diminishing dependence on external service providers such as Zerohash.
The OCC’s public feedback window concludes on March 20, 2026. Upon authorization, Morgan Stanley would join an established group that includes BNY Mellon and State Street.
