Breakthrough in CLARITY Act Negotiations: JPMorgan Says US Crypto Regulations Are Near Completion

The US is moving closer to establishing a clear regulatory framework for digital assets, with the CLARITY Act gaining momentum in Washington. JPMorgan has indicated that negotiations among lawmakers and regulators are nearing a breakthrough, with only a few issues remaining unresolved. A senior policy official noted that the number of contentious items has decreased significantly, from around a dozen to just two or three, 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 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 centers on whether stablecoin issuers should be allowed to offer yield-like rewards to users, which has drawn opposition from banks citing concerns over 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 risks, as the final legislative text has yet to be 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 push the bill into a more uncertain political environment. JPMorgan noted that the outlook for the 2026 midterm elections remains mixed, with expectations that Democrats could regain control of the House of Representatives, potentially slowing progress on crypto legislation. For now, the direction of travel 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.