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

The long-awaited CLARITY Act is gaining momentum in Washington, with JPMorgan indicating that negotiations may be nearing a breakthrough. In a recent report, JPMorgan stated that discussions among lawmakers and regulators suggest the legislation is close to completion, with only a few unresolved issues remaining. A senior policy official noted that the list of contentious items has decreased significantly, from around a dozen to just 2-3 issues, and that the debate surrounding stablecoin rewards is now 'in a good place.' The CLARITY Act aims to define the regulation of 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' and that remaining questions 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 opposition from banks citing concerns about 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 timing of the final legislative text and the potential impact of the 2026 midterm elections on the bill's priority. Nevertheless, 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 toward integrating digital assets into the US financial system, providing the industry with long-sought rules and regulations.