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

The US is edging closer to finalizing the long-awaited CLARITY Act, with JPMorgan pointing to signs that negotiations are nearing a breakthrough. According to a recent report, 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 list of contentious items has decreased significantly, from around a dozen to just two or three, and that the debate surrounding stablecoin rewards is now in a favorable position. The CLARITY Act aims to define the 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 may be 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 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. The timing of the bill's passage 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 appears clear, with stakeholders willing to compromise to establish a workable framework. 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 sought for years.