JPMorgan says CLARITY Act nearing finish line as talks advance

The long-standing effort to create a formal set of rules for the American cryptocurrency market is entering its final stages. 

According to a new report from JPMorgan Chase, the much-anticipated CLARITY Act is nearing a significant breakthrough as lawmakers and regulators resolve their primary disagreements.

The investment bank noted on Wednesday that discussions in Washington suggest the legislation is almost finished. 

A senior policy official revealed that the number of disputed items has dropped from about a dozen to just two or three, CoinDesk reported. Furthermore, the debate regarding stablecoin rewards—a major sticking point for months—is reportedly now "in a good place."

Related: Treasury Secretary gains support as Coinbase backs key U.S. bill

Defining the rules of the road

The CLARITY Act is designed to provide the first comprehensive framework for digital assets in the United States. 

Its primary goal is to clarify exactly which agencies oversee specific parts of the market. 

Currently, the industry faces confusion over where the authority of the Securities and Exchange Commission (SEC) ends and where the Commodity Futures Trading Commission (CFTC) begins.

Beyond agency jurisdiction, the act aims to set standards for how decentralized finance (DeFi) platforms and stablecoins should operate within the existing financial system. 

One specific area of tension has been whether stablecoin providers can offer rewards similar to interest on bank deposits. 

While banks have argued this could create risks without proper safeguards, JPMorgan suggests that the newest proposals may finally find support from both the crypto industry and traditional lenders.

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Race against election clock

Despite the optimistic tone from Capitol Hill, several hurdles remain. 

The final text of the bill has not been made public, and a formal date for a vote has yet to be set. Timing is becoming a critical factor as the November 2026 midterm elections approach.

JPMorgan pointed out that if the election results in Democrats regaining control of the House of Representatives, crypto legislation might lose its spot as a top priority. 

This potential shift in power could slow down the progress made so far. For now, the focus remains on finding a middle ground. 

As one policy advisor noted in the report, “there is no such thing as a perfect bill,” indicating that stakeholders are willing to compromise to finally establish a working system. 

If successful, the CLARITY Act would represent the most significant step yet in bringing digital assets into the mainstream U.S. financial landscape.

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