JPMorgan: CLARITY Act Negotiations Near a Final Breakthrough

JPMorgan says Washington's negotiations over the CLARITY Act are closing in on a deal, with lawmakers and regulators narrowing the list of open disputes to just two or three items. Earlier drafts had as many as 23 unresolved issues, according to the bank. The bill is intended to create a clearer U.S. legal framework for digital assets. It would divide oversight between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), and set rules for stablecoins and decentralized finance (DeFi). In a recent report, JPMorgan said discussions have moved toward completion and that stablecoin "rewards" are closer to a compromise after weeks of debate. A senior policy official cited in the report said the issue is in a better place than before. A core focus of the CLARITY Act is drawing sharper boundaries between the SEC and CFTC, including how tokens are classified and when an asset falls under securities rules. Those definitions would shape compliance expectations for issuers, exchanges, and investors. People familiar with the process said the draft is close to final form, with remaining gaps centered on DeFi oversight and token classification. No final legislative text has been released. Stablecoin rewards remain one of the most sensitive topics. Banks have argued that reward-like returns can resemble deposit-taking and should not be offered outside traditional safeguards. Crypto firms have pushed for flexibility to provide broader stablecoin-linked services. JPMorgan said the latest proposals could attract support from both crypto companies and traditional financial institutions. Despite reported momentum, timing risks remain. Congress has not scheduled a vote and final language is still pending. JPMorgan also flagged the 2026 midterm elections as a potential complicating factor, noting Democrats could regain control of the House of Representatives, which could slow crypto-related legislation. Policy advisers involved in the talks described negotiations as constructive, while acknowledging that compromise will be required to finish the bill.