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

The US is making significant progress on the long-awaited CLARITY Act, with JPMorgan indicating that negotiations are approaching a breakthrough. In a recent report, JPMorgan noted that discussions between lawmakers and regulators suggest the legislation is almost complete, with only a few outstanding issues remaining. A senior policy official stated that the number of contentious items has decreased from around a dozen to just 2-3, and that the debate surrounding stablecoin rewards is 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 expressed optimism, with a Senate staffer stating that the draft legislation is nearly complete, and that remaining questions around areas like DeFi oversight and token classification may be resolved soon. A key point of debate has been whether stablecoin issuers should be allowed to offer rewards to users, which has drawn opposition from banks citing concerns over regulatory safeguards. 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. JPMorgan noted that the outcome of the elections remains mixed, and that a change in the political landscape could slow progress on crypto legislation. Nevertheless, stakeholders appear willing to compromise and 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.