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

The US is making significant progress on the long-awaited CLARITY Act, with JPMorgan indicating that negotiations are 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 unresolved issues remaining. A senior policy official stated that the number of contentious items has decreased from around a dozen to just 2-3, and the debate surrounding stablecoin rewards is now in a favorable position. The CLARITY Act aims to define the 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 expressed optimism, with a Senate staffer noting that the draft legislation is nearly complete, and remaining questions around areas like 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, there are still risks and uncertainties, including the timing of the final legislative text and the potential impact of the 2026 midterm elections on the bill's priority. 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 been seeking for years.