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

The US is edging closer to finalizing its cryptocurrency rulebook, with JPMorgan highlighting signs that the CLARITY Act is nearing completion. According to a recent report, discussions among lawmakers and regulators indicate that the legislation is almost finalized, with only a few outstanding issues remaining. A senior policy official noted that the number of contentious items has decreased significantly, from around a dozen to just two or three, and that the debate surrounding stablecoin rewards has reached a favorable point. The CLARITY Act aims to provide clarity on the regulation of 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, a issue that has drawn opposition from banks. However, the latest proposals may find support from both crypto firms and traditional financial institutions. 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. JPMorgan noted that the outlook for the elections remains mixed, and that a change in the political landscape could slow progress on crypto legislation. For now, stakeholders appear willing to compromise in order to establish a workable framework, with one policy advisor stating 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 clarity and rules that industry participants have been seeking for years.