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

The US is moving closer to finalizing the CLARITY Act, with JPMorgan indicating that negotiations are nearing a breakthrough. A recent report suggests that discussions among lawmakers and regulators are progressing, with only a few outstanding issues remaining. A senior policy official noted that the number of contentious items has decreased significantly, from around a dozen to just two or three, with the debate over 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 SEC and CFTC, as well as the treatment of stablecoins and decentralized finance platforms under existing financial rules. Lawmakers involved in the discussions are optimistic, with a Senate staffer stating that the draft legislation is nearly complete, and remaining issues, such as DeFi oversight and token classification, may be 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 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 uncertain, with the final legislative text yet to be released and no formal vote scheduled. The outcome of the 2026 midterm elections may also impact the bill's progress, with some policy experts warning that delays could lead to a more uncertain political environment. Despite these challenges, 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 represent a significant step towards integrating digital assets into the US financial system, providing long-sought rules for industry participants.