The US is making significant progress on the highly anticipated CLARITY Act, with JPMorgan suggesting that negotiations are approaching a major 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 noted that the number of contentious items has decreased from around a dozen to just 2-3, with the debate over stablecoin rewards now in a favorable position. 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 regulations. Lawmakers involved in the discussions have 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 revolves around 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 challenges, as the final legislative text has yet to be released, and no formal vote has been scheduled.

Timing is also a concern, 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, which could impact the priority of crypto legislation.

For now, the direction of progress appears clear, with stakeholders 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 been seeking for years.