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

The US is making significant progress on the highly anticipated CLARITY Act, with JPMorgan indicating that negotiations are nearing a major breakthrough. In a recent report, the bank pointed out that discussions among lawmakers and regulators suggest the legislation is almost complete, with only a few unresolved 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 good place.' The CLARITY Act aims to establish a clear 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 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 may be resolved soon. One of the most closely watched debates centers on whether stablecoin issuers should be allowed to offer yield-like rewards to users, which has drawn criticism from banks arguing that such features could replicate deposit-taking without the same regulatory safeguards. However, the latest proposals may find support from both crypto firms and traditional financial institutions, according to JPMorgan. Despite the progress, there are still risks and uncertainties, including the possibility of delays that could push the bill into a more uncertain political environment. With the 2026 midterm elections approaching, some policy experts warn that the outlook for crypto legislation may become less favorable if Democrats regain control of the House of Representatives. For now, stakeholders appear willing to compromise in order 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 toward integrating digital assets into the US financial system, providing the regulatory clarity that industry participants have been seeking for years.