Breakthrough in CLARITY Act Negotiations: JPMorgan Sees US Crypto Regulatory Framework Nearing Completion

A significant breakthrough is imminent in the US for the highly anticipated CLARITY Act, with JPMorgan indicating that negotiations are nearing completion. According to a recent report, discussions among lawmakers and regulators suggest that the legislation is close to being finalized, with only a few unresolved 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 surrounding 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 Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), as well as the treatment of stablecoins and decentralized finance platforms under existing financial rules. 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 around areas like DeFi oversight and token classification potentially being resolved soon. One of the most closely watched debates revolves around whether stablecoin issuers should be allowed to offer rewards to users, which has drawn criticism from banks arguing that such features could replicate deposit-taking without equivalent regulatory safeguards. The latest proposals may find support from both crypto firms and traditional financial institutions, according to JPMorgan. However, the path forward is not without challenges, as the final legislative text has yet to be released, and no formal vote has been scheduled. Timing is also a concern, 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 uncertain, with expectations that Democrats could regain control of the House of Representatives, potentially slowing progress on crypto legislation. For now, the direction appears clear, with stakeholders willing to compromise to establish a workable framework. If passed, the CLARITY Act would mark a significant step toward integrating digital assets into the US financial system, providing the rules that industry participants have sought for years.