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

The US is moving closer to establishing a clear regulatory framework for digital assets, with JPMorgan highlighting signs that the CLARITY Act is nearing completion. According to a recent report, discussions among lawmakers and regulators suggest that only a few issues remain unresolved. A senior policy official noted that the number of contentious items has decreased from around a dozen to just 2-3 issues, with the debate over stablecoin rewards now "in a good place". The CLARITY Act aims to define the 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 are optimistic, with a Senate staffer stating 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 yield-like rewards to users, which has drawn pushback from banks. However, the latest proposals may find support from both crypto firms and traditional financial institutions. While the path forward is not without risk, with the final legislative text yet to be released and no formal vote scheduled, the outlook appears positive. JPMorgan notes that the 2026 midterm elections may impact the legislative landscape, but for now, stakeholders appear willing to compromise to establish a workable framework. 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 sought for years.