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

The long-awaited CLARITY Act is gaining momentum in Washington, with JPMorgan indicating that negotiations are nearing a breakthrough. In a recent report, the bank noted that discussions among lawmakers and regulators suggest the legislation is almost complete, 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 progressing positively. The CLARITY Act aims to establish a 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 may be resolved soon. A key point of debate centers on whether stablecoin issuers should be allowed to offer yield-like rewards to users, which has drawn opposition from banks citing concerns about regulatory safeguards. However, the latest proposals may gain support from both crypto firms and traditional financial institutions, according to JPMorgan. Despite the progress, the path forward is uncertain, with the final legislative text yet to be released and no formal vote scheduled. The outcome of the 2026 midterm elections may also impact the bill's priority, potentially slowing its progress. 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 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.