Breakthrough in CLARITY Act Negotiations: JPMorgan Sees US Crypto Regulation 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 stated that discussions between lawmakers and regulators suggest the legislation is almost complete, with only a few remaining issues to be resolved. A senior policy official noted that the list of contentious items has been narrowed down from around a dozen to just two or three, 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 rules. 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 centers on whether stablecoin issuers should be allowed to offer rewards to users, which has drawn opposition from banks citing concerns over regulatory safeguards. However, the latest proposals may find support from both crypto firms and traditional financial institutions, according to JPMorgan. Despite the progress, there are still risks and uncertainties, including the timing of the bill's release and vote, as well as the potential impact of the 2026 midterm elections on the legislative process. If passed, the CLARITY Act would represent a significant step towards integrating digital assets into the US financial system, providing the regulatory clarity that industry participants have been seeking for years.