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

The long-awaited CLARITY Act is gaining momentum in Washington, with JPMorgan indicating that negotiations may be nearing a breakthrough. In a recent report, the bank noted that discussions among lawmakers and regulators suggest the legislation is close to completion, with only a few unresolved issues remaining. A senior policy official stated that the list of contentious items has been narrowed down from around a dozen to just 2-3 issues, with the debate over stablecoin rewards now in a favorable position. 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 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 noting that the draft legislation is nearly complete, and remaining questions around DeFi oversight and token classification may be resolved soon. The proposal to allow stablecoin issuers to offer yield-like rewards to users has been a subject of debate, with banks arguing that such features could replicate deposit-taking without equivalent regulatory safeguards. However, the latest proposals may find support from both crypto firms and traditional financial institutions, according to JPMorgan. Despite the progress, the path forward is not without risks, as the final legislative text has yet to be released, and no formal vote has been scheduled. The outcome of the 2026 midterm elections may also impact the bill's priority, potentially slowing its progress. Nevertheless, stakeholders appear willing to compromise 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 rules that industry participants have sought for years.