Breakthrough in CLARITY Act Negotiations: JPMorgan Sees US Crypto Regulatory Framework Near Completion

The US is nearing a significant milestone in the development of its crypto regulatory framework, with JPMorgan indicating that negotiations for the CLARITY Act are approaching a breakthrough. Talks between lawmakers and regulators suggest that the legislation is almost complete, with only a few issues remaining to be resolved. A senior policy official noted that the number of contentious items has decreased from around a dozen to just 2-3, with the debate over stablecoin rewards now in a favorable position. 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 regulations. Lawmakers involved in the discussions have expressed optimism, with a Senate staffer stating that the draft legislation is 'very close' to being finalized, and remaining issues potentially being 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 criticism 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, 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 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.