The long-awaited CLARITY Act is gaining momentum in Washington, with JPMorgan indicating that negotiations may be approaching a breakthrough. In a recent report, JPMorgan stated that discussions among lawmakers and regulators suggest the legislation is near completion, with only a few issues remaining unresolved. A senior policy official noted that the list of contentious items has decreased from around a dozen to just 2-3 issues, and the debate surrounding stablecoin rewards is now in a favorable position.
The CLARITY Act aims to establish regulations for digital assets in the US, including oversight division between agencies like the SEC and CFTC, as well as the treatment of stablecoins and decentralized finance platforms under existing financial rules. Lawmakers involved in the discussions expressed optimism, with a Senate staffer stating that the draft legislation is 'very close' and remaining questions may be resolved soon. The debate over whether stablecoin issuers should be allowed to offer yield-like rewards to users has been a major point of contention, with banks arguing that such features could replicate deposit-taking without equivalent 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 risks, as the final legislative text has yet to be released and no formal vote has been scheduled.
The timing 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 remains mixed, which could impact the priority of crypto legislation.
For now, stakeholders appear willing to compromise to establish a workable framework, with one policy advisor stating that 'there is no such thing as a perfect bill.' If passed, the CLARITY Act would mark a significant step towards integrating digital assets into the US financial system, providing the rules that industry participants have sought for years.