Breakthrough in CLARITY Act Negotiations: JPMorgan Sees US Crypto Regulations Nearing 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 pointed to signs that discussions among lawmakers and regulators suggest the legislation is nearing completion, with only a few outstanding issues remaining. A senior policy official noted that the number of contentious items has decreased from around a dozen to just two or three, with the debate over stablecoin rewards now proceeding in a positive direction. The CLARITY Act aims to establish a clear 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 nearly complete 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 rewards to users, which has drawn opposition from banks citing concerns about 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 challenges, 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 progress 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 regulatory clarity that industry participants have sought for years.