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

The long-awaited CLARITY Act is gaining momentum in Washington, with JPMorgan indicating that negotiations may be approaching a breakthrough. In a recent report, the bank noted that discussions among lawmakers and regulators suggest the legislation is nearing completion, with only a few issues remaining. A senior policy official stated that the list of contentious items has decreased 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 define the regulation of 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 'very close' and that remaining questions may be resolved soon. One of the most closely watched debates centers on whether stablecoin issuers should be allowed to offer yield-like rewards to users, which has drawn opposition from banks citing concerns over deposit-taking without 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. Timing is also a factor, with some policy experts warning that delays could push the bill into a more uncertain political environment. JPMorgan noted that the outlook for the 2026 midterm elections remains 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 rules that industry participants have sought for years.