The US is making significant progress on the long-awaited CLARITY Act, with JPMorgan indicating that negotiations may be nearing a breakthrough. In a recent report, the bank stated that discussions among lawmakers and regulators suggest the legislation is almost complete, with only a few issues remaining.
A senior policy official noted that the number of contentious items has decreased from around a dozen to just 2-3, and the debate around stablecoin rewards is 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 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, 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 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 bill into a more uncertain political environment.
JPMorgan noted that the outlook for the 2026 midterm elections is 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 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.