JPMorgan: Clarity Act Not Fully Dead After 49-50 Senate Vote

The Block reported that JPMorgan analysts described the Clarity Act as "not fully dead" following its failure to advance in a Senate procedural vote on Tuesday. The measure secured 49 votes in favor against 50 opposed, falling short of the 60 required to proceed. A last-minute switch by Sen. Thom Tillis to a negative vote, accompanied by a motion to reconsider, provides a mechanism for Senate Republicans to return the bill to the floor.

In a Wednesday note, analysts led by Kenneth Worthington pointed to the GENIUS Act, which became law after failing an initial cloture vote, as a precedent for crypto-related legislative hurdles. They stated that the legislation remains on the Senate calendar and that leadership could schedule another session before Congress adjourns at year's end. However, the team viewed prospects for further negotiation as constrained by the short Senate session remaining ahead of the midterm elections.

JPMorgan suggested that investor attention may pivot toward the Securities and Exchange Commission and the Commodity Futures Trading Commission. The analysts cautioned that agency rules lack the permanence of statutory laws, as they can be repealed or modified by future administrations and are subject to judicial review. Mizuho Securities similarly predicted a shift in focus to the SEC and CFTC, noting that 80% to 90% of Robinhood's revenue is derived from sources other than crypto.