The long-awaited CLARITY Act is gaining momentum in Washington, with JPMorgan indicating that negotiations are nearing a breakthrough. In a recent report, the bank noted that discussions among lawmakers and regulators suggest the legislation is almost complete, with only a few remaining issues to be resolved. A senior policy official stated that the list of contentious items has been narrowed down from around a dozen to just 2-3 issues, 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 have expressed optimism, with a Senate staffer noting that the draft legislation is 'very close' to being finalized, and remaining questions around areas like 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 yield-like 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. Additionally, the timing of the bill's passage could be affected by the upcoming 2026 midterm elections, which may impact the priority given to crypto legislation.
Despite these challenges, stakeholders appear willing to compromise in order 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 towards integrating digital assets into the US financial system, providing the regulatory clarity that industry participants have been seeking for years.