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

The long-awaited CLARITY Act is gaining momentum in Washington, with JPMorgan indicating that negotiations may be nearing a breakthrough. According to a recent report, discussions among lawmakers and regulators suggest that the legislation is close to being finalized, with only a few remaining issues to be resolved. A senior policy official noted that the number of contentious items has decreased significantly, from around a dozen to just two or three, and that the debate over stablecoin rewards is 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 stating that the draft legislation is 'very close' to being finalized, and that remaining questions around areas such as 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 rewards to users, a issue that has drawn opposition from banks. 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 ahead, including the timing of the final legislative text and the potential impact of the 2026 midterm elections on the bill's priority. If passed, the CLARITY Act would represent a significant step towards integrating digital assets into the US financial system, providing the regulatory clarity that industry participants have been seeking for years.