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

The long-awaited CLARITY Act is gaining momentum in Washington, with JPMorgan indicating that negotiations are nearing a breakthrough. In a recent report, the bank noted that discussions among lawmakers and regulators suggest the legislation is almost complete, with only a few issues remaining unresolved. A senior policy official observed that the list of contentious items has decreased from around a dozen to just two or three, and the debate surrounding stablecoin rewards is 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 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 expressed optimism, with a Senate staffer stating that the draft legislation is nearly complete and remaining questions may be resolved soon. One of the most closely watched debates revolves around whether stablecoin issuers should be allowed to offer rewards to users, which has drawn opposition from banks citing concerns about deposit-taking without equivalent regulatory safeguards. The latest proposals may garner support from both crypto firms and traditional financial institutions, according to JPMorgan. However, the path forward is uncertain, and the final legislative text has yet to be released. Timing is also a concern, as delays could push the bill into a more uncertain political environment. JPMorgan noted that the outlook for the 2026 midterm elections is mixed, which could impact the priority of crypto legislation. For now, stakeholders appear willing to compromise 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 toward integrating digital assets into the US financial system, providing the regulatory clarity that industry participants have sought for years.