JPMorgan Indicates the US Crypto Regulatory Framework is Nearing Completion

The long-anticipated CLARITY Act is gaining momentum in Washington, with JPMorgan suggesting that negotiations are approaching a breakthrough. In a recent report, the bank stated that discussions between lawmakers and regulators indicate the legislation is nearing completion, with only a few outstanding issues remaining. A senior policy official noted that the number of contentious items has decreased from around a dozen to just 2-3, and the debate surrounding stablecoin rewards is 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 rules. Lawmakers involved in the discussions expressed optimism, with a Senate staffer stating that the draft legislation is 'very close' to being finalized, and remaining questions around areas like DeFi oversight and token classification may be resolved soon. One of the most closely watched debates centers on whether stablecoin issuers should be allowed to offer rewards to users, which has drawn criticism from banks citing concerns about deposit-taking without adequate regulatory safeguards. The latest proposals may garner support from both crypto firms and traditional financial institutions, according to JPMorgan. However, the path forward is uncertain, with the final legislative text yet to be released and no formal vote scheduled. Timing is also a concern, as delays could push the bill into a more uncertain political environment, particularly with the 2026 midterm elections approaching. Despite these risks, stakeholders appear willing to compromise to establish a workable framework, with one policy advisor noting that 'there is no such thing as a perfect bill.' 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 sought for years.