The long-awaited CLARITY Act is gaining momentum in Washington, with JPMorgan indicating that negotiations may be nearing a breakthrough. According to a recent report, discussions among lawmakers and regulators suggest that the legislation is close to being finalized, 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 2-3 issues, with the debate around stablecoin rewards now in a positive place.
The CLARITY Act aims to define how digital assets are regulated in the US, including the division of oversight between agencies such as the Securities and Exchange Commission and the Commodity Futures Trading Commission. It also addresses 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 stating that the draft legislation is 'very close' and that remaining questions around areas like DeFi oversight and token classification 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, with banks arguing that such features could replicate deposit-taking without the same 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 risk, as the final legislative text has yet to be released and no formal vote has been scheduled.
The outlook for the 2026 midterm elections remains mixed, which could impact the priority of crypto legislation. For now, the direction appears clear, with stakeholders willing to compromise 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 rules that industry participants have sought for years.