Breakthrough in CLARITY Act: JPMorgan Indicates US Crypto Regulations Are Near Completion

Washington is gaining momentum for the long-awaited CLARITY Act, with JPMorgan indicating that negotiations may be nearing a breakthrough. A recent report by the bank suggests that discussions among lawmakers and regulators indicate the legislation is close to completion, with only a few issues remaining unresolved. A senior policy official noted that the list of contentious items has narrowed down from roughly a dozen to just 2-3 issues, and the debate around stablecoin rewards is now in a good place. The CLARITY Act aims to define the regulation of digital assets in the US, including the division of oversight between agencies like 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 rules. Lawmakers involved in the discussions have struck an optimistic tone, with a Senate staffer noting that the draft legislation is very close, and remaining questions around areas like DeFi oversight and token classification could be 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 pushback from banks. The latest proposals could find support from both crypto firms and traditional financial institutions, according to JPMorgan. However, the path forward is not without risk, as the final legislative text has yet to be released, and no formal vote has been scheduled. The outlook for the 2026 midterm elections remains mixed, which could impact the priority of 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 major step toward integrating digital assets into the US financial system, providing the rules that industry participants have sought for years.