Momentum is building in Washington for the much-anticipated CLARITY Act, with JPMorgan (JPM) pointing to signs that negotiations may be close to fruition.
JPMorgan said discussions between lawmakers and regulators suggest the legislation is close to being finalized, with only a small number of issues still unresolved in a report released Wednesday.
A senior policymaker noted that the list of controversial points has narrowed from around a dozen to just “2-3 questions”, while the debate over stable rewards is now “in the right place”.
The CLARITY Act is designed to define how digital assets are regulated in the United States, including how oversight is distributed among agencies such as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). It also explains how stablecoins and decentralized finance platforms should be treated under existing financial rules.
Lawmakers involved in the discussions struck an optimistic tone. A Senate member familiar with the process said the bill was “very close,” with remaining questions regarding areas such as DeFi oversight and token classification potentially being resolved in the near term, according to the report.
One of the most closely watched debates concerns whether stablecoin issuers should be allowed to offer yield-like rewards to users. The issue has sparked pushback from banks, who say such features could replicate deposit collection without the same regulatory safeguards.
The latest proposals could find support from both crypto companies and traditional financial institutions, according to JPMorgan.
Yet the path forward is not without risk. The final legislative text has not yet been published and no formal vote is planned. 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 could regain control of the House of Representatives. If this scenario plays out, crypto legislation could lose priority, which could slow down further progress.
For now, the direction to follow seems clear. As one policy advisor said, “there is no such thing as a perfect bill,” highlighting the willingness of stakeholders to compromise in order to establish a workable framework.
If passed, the CLARITY Act would mark a major step toward integrating digital assets into the U.S. financial system, providing rules that industry players have sought for years.
