The US crypto industry is on the cusp of a major breakthrough as momentum builds for the CLARITY Act, with JPMorgan indicating that negotiations are nearing a final resolution. In a recent report, the bank noted that discussions among lawmakers and regulators suggest the legislation is almost complete, with only a few outstanding issues remaining.
A senior policy official revealed that the number of contentious items has decreased from around a dozen to just 2-3, with the debate surrounding stablecoin rewards now 'in a good place.' The CLARITY Act aims to establish a clear regulatory framework for digital assets in the US, including the division of oversight between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (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 around areas like DeFi oversight and token classification potentially being resolved soon.
One of the most closely watched debates centers on whether stablecoin issuers should be allowed to offer yield-like rewards to users, which has drawn opposition from banks citing concerns about regulatory safeguards. However, the latest proposals may find support from both crypto firms and traditional financial institutions, according to JPMorgan. Despite the progress, 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 bill into a more uncertain political environment, potentially slowing progress.
The outcome of the 2026 midterm elections remains mixed, with expectations that Democrats could regain control of the House of Representatives, which could impact the priority given to crypto legislation. Nevertheless, stakeholders appear willing to compromise in order to establish a workable framework, with one policy advisor noting that 'there is no such thing as a perfect bill.' 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.