JPMorgan Says U.S. Crypto Rules Remain Exposed Without Market-Structure Law

U.S. crypto markets are gaining new regulatory pathways through federal agencies, but JPMorgan analysts say the lack of a market-structure law leaves the framework exposed to political and legal shifts.

Analysts led by Nikolaos Panigirtzoglou describe the agency initiatives as a near-term aid to institutional participation. They say legislation would provide a more lasting foundation. The Senate failed to advance the CLARITY Act in September, and the analysts consider passage in 2026 unlikely; they say work may resume in 2027.

The Securities and Exchange Commission’s five-year Innovation Exemption creates a temporary route for some tokenized stocks. Eligible tokens must retain the financial and voting rights attached to the underlying shares. Synthetic versions are excluded, trading venues face limits, and companies can decide whether to tokenize their stock.

JPMorgan’s analysts also pointed to companies’ recent decisions not to tokenize shares, along with weaker crypto exchange-traded fund flows and futures positioning, as factors weighing on sentiment toward application tokens such as Ether (ETH). They said those indicators briefly improved after the SEC announced the plan on Sept. 15.

The Commodity Futures Trading Commission is examining how investors could trade leveraged crypto on U.S.-regulated platforms. The analysts expect no substantial progress before 2027. They argue that shifting more activity to regulated U.S. markets could deepen liquidity and improve price discovery.

The Office of the Comptroller of the Currency has issued national trust charters to additional stablecoin issuers and digital asset firms. The charters bring custody, reserve management and issuance under federal oversight. The Independent Community Bankers of America has sued over some approvals. JPMorgan’s analysts say a granted charter may be harder to reverse in practice than some agency guidance, though legal challenges remain possible.

The Financial Accounting Standards Board is weighing whether some qualifying stablecoins should count as cash equivalents on company balance sheets. The proposal’s comment period closes Nov. 19. The analysts say adoption could expand stablecoin use in corporate payments and institutional liquidity management.