Breakthrough in CLARITY Act Talks: 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. A recent report by the bank suggests that discussions among lawmakers and regulators imply the legislation is close to being finalized, with only a few issues remaining unresolved. A senior policy official noted that the list of contentious items has decreased from around a dozen to just 2-3 issues, with the debate surrounding stablecoin rewards now in a favorable position. The CLARITY Act aims to define the regulation of digital assets in the US, including the division of oversight between agencies such as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (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 nearly complete, and remaining questions around areas like DeFi oversight and token classification may be resolved soon. One of the most closely watched debates revolves around whether stablecoin issuers should be allowed to offer yield-like rewards to users, which has drawn opposition from banks citing concerns about replicating 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 not without risks, as the final legislative text has yet to be released and no formal vote has been scheduled. The timing is also a concern, with some policy experts warning that delays could push the bill into a more uncertain political environment, potentially slowing progress. JPMorgan noted that the outlook for the 2026 midterm elections remains mixed, with expectations that Democrats could regain control of the House of Representatives, which could lead to crypto legislation losing priority. For now, the direction appears clear, with stakeholders willing to compromise to establish a workable framework. If passed, the CLARITY Act would mark a significant step toward integrating digital assets into the US financial system, providing the rules that industry participants have sought for years.