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

The US is edging closer to finalizing its crypto regulatory framework, with JPMorgan indicating that negotiations for the CLARITY Act are nearing a decisive breakthrough. In a recent report, the bank noted that discussions among lawmakers and regulators suggest the legislation is almost complete, with only a few remaining issues to be resolved. A senior policy official revealed that the list of contentious items has been narrowed down from around a dozen to just two or three, with the debate over stablecoin rewards now 'in a good place.' The CLARITY Act aims to provide clarity on how digital assets will be regulated 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 stating that the draft legislation is 'very close' to being finalized, and remaining questions potentially being 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. 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 to the bill's passage, including the lack of a formal vote and the uncertain timing. Policy experts warn that delays could push the bill into a more uncertain political environment, particularly with the 2026 midterm elections approaching. Nevertheless, stakeholders appear willing to compromise to establish a workable framework, with one policy advisor noting that 'there is no such thing as a perfect bill.' If passed, the CLARITY Act would represent a significant step towards integrating digital assets into the US financial system, providing the regulatory clarity that industry participants have been seeking for years.