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JPMorgan has warned that delays to the CLARITY Act could influence whether tokenized markets develop on public blockchains or inside established financial systems. The warning focuses on who will control trading, liquidity and settlement as tokenized markets expand.
JPMorgan analysts led by Nikolaos Panigirtzoglou said Polymarket placed the bill’s 2026 passage odds at 37% after the Senate prioritized other legislation before its summer recess. The bank linked the weaker outlook to unresolved disputes over stablecoin yield, decentralized finance, enforcement and anti-money laundering rules.
However, ethics negotiations advanced after Republican Senator Thom Tillis and Democratic Senator Ruben Gallego finalized a revised conflict-of-interest compromise.
JPMorgan argues that regulatory delay will not stop tokenization. It gives banks, clearinghouses and regulated venues more time to build blockchain-based products around infrastructure they already control. Public networks could lose trading activity, liquidity and institutional users even as the underlying technology gains wider adoption.
Wall Street firms are already testing tokenized markets through established financial infrastructure. On July 15, 2026, the Depository Trust & Clearing Corporation processed tokenized securities in a production trial involving more than 30 firms, including JPMorgan, BlackRock, Goldman Sachs, Citadel Securities, Nasdaq and the New York Stock Exchange.
Vanguard. BlackRock, JPM and more to participate in trial run of tokenized securities led by the DTCC, starting with $MSFT, $QQQ, $SPY $SHV with a formal program launching in October. DTCC will use off both the current way and tokenized options via @Vlajournaliste pic.twitter.com/KxyUulazla
— Eric Balchunas (@EricBalchunas) July 15, 2026
The trial supports JPMorgan’s timing argument, while showing that regulated infrastructure and public networks may not develop as separate markets. DTCC used both a private Besu network and Canton, which it described as a public network, for the conversions.
The CLARITY Act would divide digital-asset oversight between the Securities and Exchange Commission and Commodity Futures Trading Commission. JPMorgan said that framework could lower barriers for banks, exchanges, custodians and market makers while moving more trading toward regulated US venues.
The bank also identified a weakness in the current draft. Provisions that allow some tokenized securities or derivatives activity outside SEC or CFTC oversight, paired with lighter anti-money laundering requirements, could discourage the institutional participation the bill is meant to attract.
Senator Cynthia Lummis released merged Banking and Agriculture Committee text on July 22 after the Banking Committee advanced the bill 15-9 in May. Senate Majority Leader John Thune said he wanted to begin the floor process before recess, though he did not expect final passage by the break.
🇺🇸 SENATOR CYNTHIA LUMMIS WITH THE MOST DIRECT CLARITY ACT STATEMENT YET:
"90% of the spot market is overseas. 80% of the digital asset futures market is overseas. If the Clarity Act failed and we allowed this industry to continue to grow and mature overseas, they won't come…
— WOLF Bitcoin (@WOLF_Bitcoin_) July 30, 2026
US Treasury Secretary Scott Bessent pushed for an immediate Senate vote, arguing that the bill would raise compliance requirements for digital asset intermediaries and prevent more crypto activity from moving overseas.
More than a year ago, the House passed the Clarity Act.
There’s been progress since — thousands of hours of bipartisan negotiations took place at the staff and Member levels. The Senate Committees on Banking and Agriculture advanced their respective titles. And Senate…
— Treasury Secretary Scott Bessent (@SecScottBessent) July 30, 2026
The bill still needs a 60-vote Senate coalition to advance. The Senate’s scheduled state work period begins Aug. 10 and runs through Sept. 11.
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