TLDR
- Bitcoin maintains a trading range around mid-$60,000s while ether hovers near $2,000, with reduced trading activity on leading exchanges.
- JPMorgan identifies the Clarity Act as a potentially significant catalyst for crypto markets during the second half of 2026 should it receive approval.
- The proposed legislation would divide crypto regulation between the SEC and CFTC while permitting emerging projects to raise up to $75 million outside traditional SEC registration requirements.
- Senate progress on the bill has encountered obstacles following Coinbase’s decision to withdraw endorsement due to concerns about competitive dynamics and innovation barriers.
- Morgan Stanley pursues a federal trust bank charter from the OCC to establish direct custody services for digital assets.
Bitcoin has maintained a narrow trading corridor near the mid-$60,000 level for several weeks. Ether continues trading close to $2,000, while trading activity on major platforms has declined considerably. Market participants seek a meaningful development to shift current momentum.
Analysts at JPMorgan believe they have identified such a catalyst. In their latest research report, a team headed by Nikolaos Panigirtzoglou highlighted the Clarity Act — proposed legislation addressing U.S. crypto market structure — as a possible driver 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 dividing regulatory authority for cryptocurrencies between the Commodity Futures Trading Commission and the Securities and Exchange Commission. Digital assets would receive classification as either digital commodities or securities based on their fundamental characteristics.
JPMorgan stated that placing leading tokens under CFTC supervision would diminish regulatory ambiguity. A grandfather provision within the legislation would permit specific tokens — including XRP, Solana, Litecoin, Hedera, Dogecoin, and Chainlink — to receive commodity classification when connected to spot ETFs listed before January 1, 2026.
The proposed law would enable emerging crypto ventures to raise as much as $75 million per year outside standard SEC registration processes, while maintaining disclosure obligations. JPMorgan analysts indicated this framework could restore domestic token issuance and venture capital activity that has migrated to foreign jurisdictions.
Clarity Act Hits a Wall
Despite its potential benefits, the legislation has encountered resistance. The Senate Banking Committee delayed a scheduled markup session in early 2026 following Coinbase, America’s premier crypto exchange platform, withdrawing its endorsement. Coinbase raised concerns that the current legislative language might constrain innovation, diminish competitive dynamics, and impose restrictions on stablecoin reward mechanisms.
Coinbase CEO Brian Armstrong attributed the delays primarily to banking industry trade associations rather than individual financial institutions. The legislation remains in legislative limbo while policymakers address disagreements surrounding critical provisions.
Meanwhile, traditional Wall Street institutions continue 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 prospective entity, Morgan Stanley Digital Trust National Association, would operate from Purchase, New York.
Morgan Stanley Goes All-In on Crypto Custody
Upon approval, the subsidiary would provide custody for digital assets, facilitate token transfers associated with client portfolios, and deliver staking services. The entity would operate without accepting deposits or originating loans.
Morgan Stanley oversees approximately $9 trillion in client assets. The institution introduced Bitcoin investment vehicles to wealth management clients in 2021 and broadened crypto trading capabilities via its E*Trade platform in 2025.
During January 2026, the firm filed applications for spot Bitcoin, Solana, and Ethereum ETFs while appointing Amy Oldenburg to lead digital asset strategy initiatives. A federally regulated trust bank would enable the firm to internalize custody and staking operations, minimizing dependence on external service providers such as Zerohash.
The OCC’s public feedback period extends through March 20, 2026. Upon receiving approval, Morgan Stanley would join an established group that includes BNY Mellon and State Street.
