Breakthrough in CLARITY Act: JPMorgan Says US Crypto Regulations Are Near Completion

The long-awaited CLARITY Act is gaining momentum in Washington, with JPMorgan suggesting that negotiations may be nearing a conclusive breakthrough. According to a report, discussions among lawmakers and regulators indicate that the legislation is close to being finalized, with only a few outstanding issues remaining. A senior policy official noted that the list of contentious items has been narrowed down from around a dozen to just 2-3 issues, with the debate over stablecoin rewards now in a favorable position. The CLARITY Act aims to establish a regulatory framework for digital assets in the US, including the division of oversight between agencies such as the SEC and CFTC, as well as the treatment of stablecoins and decentralized finance platforms under existing financial regulations. Lawmakers involved in the discussions have expressed optimism, with a Senate staffer stating that the draft legislation is 'very close' to being finalized, and remaining questions potentially being resolved in the near term. One of the most closely watched debates revolves around whether stablecoin issuers should be allowed to offer rewards to users, which has drawn opposition from banks citing concerns over deposit-taking without equivalent regulatory safeguards. The latest proposals may garner support from both crypto firms and traditional financial institutions, according to JPMorgan. However, the path forward is not without risks, as the final legislative text has yet to be released and no formal vote has been scheduled. The timing of the bill's passage is also a factor, with some policy experts warning that delays could push the bill into a more uncertain political environment. JPMorgan noted that the outlook for the 2026 midterm elections remains mixed, which could potentially impact the priority of crypto legislation. Despite these challenges, the direction of progress appears clear, with stakeholders willing to compromise to establish a workable framework. If passed, the CLARITY Act would mark a significant step towards integrating digital assets into the US financial system, providing the regulatory clarity that industry participants have been seeking for years.