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

The long-anticipated CLARITY Act is gaining momentum in Washington, with JPMorgan indicating that negotiations may be nearing a decisive breakthrough. In a recent report, the bank noted that discussions among lawmakers and regulators suggest the legislation is nearing completion, with only a few outstanding issues remaining. A senior policy official observed that the list of contentious items has dwindled from around a dozen to just 2-3 issues, with the debate surrounding stablecoin rewards now 'in a good place.' 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 have struck an optimistic tone, with a Senate staffer noting that the draft legislation is 'very close' to being finalized, and remaining questions potentially being resolved in the near term. One of the most closely watched debates centers on whether stablecoin issuers should be permitted to offer rewards to users, a issue that has drawn opposition from banks, which argue that such features could replicate deposit-taking without equivalent 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 risks, as the final legislative text has yet to be released, and no formal vote has been scheduled. The timing of the bill's passage is also a factor, with some policy experts warning that delays could push the legislation into a more uncertain political environment. JPMorgan noted that the outlook for the 2026 midterm elections remains mixed, with expectations that Democrats could regain control of the House of Representatives, potentially slowing progress on crypto legislation. For now, the direction of travel appears clear, with stakeholders willing to compromise in order to establish a workable framework. If passed, the CLARITY Act would mark a significant step toward integrating digital assets into the US financial system, providing the regulatory clarity that industry participants have sought for years.