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

The long-awaited CLARITY Act is gaining momentum in Washington, with JPMorgan indicating that negotiations are nearing a decisive breakthrough. In a recent report, the bank noted that discussions among lawmakers and regulators suggest the legislation is almost complete, with only a few outstanding issues remaining. A senior policy official observed that the list of contentious items has been narrowed down from around a dozen to just two or three, with the debate over stablecoin rewards now in a positive 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 noting that the draft legislation is 'very close' to being finalized, and remaining issues such as DeFi oversight and token classification potentially being 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 opposition from banks citing concerns over 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 risks, as the final legislative text has yet to be released and no formal vote has been scheduled. Timing 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 impact the priority given to crypto legislation. For now, 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 clarity and rules that industry participants have been seeking for years.