Crypto Market Awaits U.S. Clarity Act as Key Catalyst for Bitcoin and Ethereum Rally

Crypto markets continue to trade sideways as investors search for a meaningful catalyst to reignite momentum. Bitcoin remains range-bound in the mid-$60,000 level, while Ethereum hovers near $2,000. Trading volumes across major crypto exchanges have thinned, reflecting cautious sentiment among both retail and institutional participants.

According to JPMorgan analysts led by Nikolaos Panigirtzoglou, a potential turning point could come from U.S. market structure legislation known as the Clarity Act. The bank suggests that approval of the bill, possibly by midyear, could serve as a strong catalyst for the digital asset market in the second half of the year. Regulatory uncertainty has long weighed on cryptocurrency prices, limiting fresh capital inflows and discouraging large-scale institutional participation.

The proposed legislation aims to establish a clearer regulatory framework by defining oversight between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Under the framework, major cryptocurrencies could be classified as digital commodities or securities. JPMorgan notes that placing leading tokens under CFTC jurisdiction may reduce compliance burdens and legal risks. A grandfather clause would reportedly treat certain tokens tied to spot ETFs listed before January 1, 2026, including XRP, Solana, Litecoin, Hedera, Dogecoin, and Chainlink, as commodities.

The bill also proposes allowing crypto projects to raise up to $75 million annually without full SEC registration, provided they meet disclosure requirements. Analysts believe this provision could revive U.S.-based token issuance, venture funding, and crypto deal activity that has increasingly moved offshore.

However, the legislation remains stalled in the Senate after delays and disagreements among lawmakers and industry participants. Coinbase recently withdrew its support, arguing that aspects of the bill could hinder innovation and limit features such as stablecoin rewards. Despite the setbacks, many analysts maintain that a comprehensive U.S. crypto regulatory framework could restore investor confidence, boost liquidity, and potentially drive a renewed Bitcoin and Ethereum rally.