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

The long-awaited CLARITY Act is gaining momentum in Washington, with JPMorgan indicating that negotiations may be nearing a final 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 list of contentious items has decreased from around a dozen to just two or three, and the debate surrounding stablecoin rewards is now progressing in a positive direction. 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 Securities and Exchange Commission and the Commodity Futures Trading Commission. It also addresses 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 nearly complete, and 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 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 push the bill into a more uncertain political environment. Despite the risks, stakeholders appear willing to compromise to establish a workable framework. 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 sought for years.