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

The long-anticipated CLARITY Act is gaining momentum in Washington, with JPMorgan indicating that negotiations are approaching a crucial breakthrough. In a recent report, the bank noted that discussions among lawmakers and regulators suggest the legislation is nearing completion, with only a few outstanding issues remaining. A senior policy official revealed that the list 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 resolution. 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 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 noting that the draft legislation is 'very close' to being finalized, and that remaining questions around areas like DeFi oversight and token classification 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, which argue that such features could replicate deposit-taking without the same regulatory safeguards. The latest proposals may 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 outcome of the 2026 midterm elections could also impact the bill's progress, with some policy experts warning that delays could push the bill into a more uncertain political environment. Despite these challenges, the direction of travel appears clear, with stakeholders willing to compromise in order 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.