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

The long-awaited CLARITY Act is gaining momentum in Washington, with JPMorgan indicating that negotiations are nearing a breakthrough. The bank's report suggests that discussions among lawmakers and regulators indicate the legislation is almost complete, with only a few remaining issues to be resolved. A senior policy official noted 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 establish a regulatory framework for digital assets in the US, including the division of oversight between 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 stating that the draft legislation is 'very close' to being finalized, 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 regulatory safeguards. However, the latest proposals may find support from both crypto firms and traditional financial institutions. Despite the progress, there are still risks, as the final legislative text has not been released, and no formal vote has been scheduled. The timing of the bill's passage is also a factor, with some policy experts warning that delays could lead to 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. Nevertheless, 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 towards integrating digital assets into the US financial system, providing the regulatory clarity that industry participants have been seeking for years.