JPMorgan Sees U.S. Crypto Regulatory Framework Nearing Completion

The long-awaited CLARITY Act is gaining momentum in Washington, with JPMorgan noting that negotiations are approaching a breakthrough. According to a recent report, discussions among lawmakers and regulators indicate that the legislation is nearing completion, with only a few unresolved issues remaining. A senior policy official stated that the list of contentious items has decreased from around a dozen to just 2-3 issues, and the debate surrounding stablecoin rewards is now in a favorable position. The CLARITY Act aims to define the regulation of digital assets in the U.S., 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 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 risk, as the final legislative text has yet to be released and no formal vote has been scheduled. The outlook for the 2026 midterm elections remains uncertain, which could impact the priority of crypto legislation. Despite this, 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 mark a significant step toward integrating digital assets into the U.S. financial system, providing the rules that industry participants have sought for years.