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JPMorgan Sees CLARITY Act as Potential H2 Crypto Catalyst as Senate Stalls

Morgan Stanley pursues an OCC trust charter for digital‑asset custody despite unresolved disputes over stablecoin yield and conflict rules.

Overview

  • Progress on the U.S. market‑structure bill has paused after Coinbase withdrew support and a planned Senate Banking Committee markup was postponed.
  • Negotiations remain hung up on whether stablecoin balances can earn yield and on proposed conflict‑of‑interest restrictions for senior officials.
  • JPMorgan says mid‑2026 passage could end “regulation by enforcement,” clarify SEC/CFTC oversight, and unlock institutional participation and tokenization.
  • The proposal would classify tokens, include a grandfather clause for ETF‑linked assets such as XRP, Solana, Litecoin, Hedera, Dogecoin and Chainlink, and allow new projects to raise up to $75 million annually without full SEC registration.
  • Large firms are building anyway: Morgan Stanley has applied for an OCC national trust bank charter to provide crypto custody and staking, with the public comment period open through March 20.