The long-awaited CLARITY Act is gaining momentum in Washington, with JPMorgan (JPM) signaling signs that negotiations may be nearing a breakthrough.
JPMorgan said discussions between lawmakers and regulators suggest the legislation is close to completion, with only a small number of issues still unresolved in a report Wednesday.
A senior political official noted that the list of contentious issues has been narrowed from about a dozen to just “2 or 3 issues,” while the debate over stablecoin rewards is now “in a good place.”
The CLARITY Act is designed to define how digital assets are regulated in the US, including how oversight is divided between agencies such as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). It also addresses how stablecoins and decentralized financial platforms should be treated under existing financial regulations.
Lawmakers involved in the discussions adopted an optimistic tone. A Senate staffer familiar with the process said the bill is “very close,” and that outstanding questions around areas such as DeFi oversight and token classification could be resolved in the near term, according to the report.
One of the most followed debates centers on whether stablecoin issuers should be allowed to offer yield-like rewards to users. The issue has generated rejection from banks, which argue that such features could replicate deposit-taking without the same regulatory safeguards.
According to JPMorgan, the latest proposals could find support from both crypto companies and traditional financial institutions.
Still, the path forward is not without risks. The final legislative text has not yet been published and no formal vote has been scheduled. 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, with expectations that Democrats can regain control of the House of Representatives. If that scenario plays out, cryptocurrency legislation could be deprioritized, which could slow progress.
For now, the direction of travel seems clear. As one political advisor put it, “there is no such thing as a perfect bill,” underscoring the willingness of stakeholders to reach agreements to establish a workable framework.
If passed, the CLARITY Act would mark an important step toward integrating digital assets into the American financial system, providing rules that industry participants have sought for years.
