JPMorgan Reports CLARITY Act Talks Near Final Breakthrough

Key Insights:

• CLARITY Act talks have narrowed to 2-3 unresolved issues, and JPMorgan says a final breakthrough is close.
• The bill would split crypto oversight between the SEC and CFTC and define rules for stablecoins and DeFi.
• Stablecoin rewards and DeFi oversight remain unresolved, while election timing could still delay the bill’s passage.

Recent crypto news has turned to Washington as JPMorgan said negotiations around the CLARITY Act are nearing a breakthrough. The bank reported that lawmakers and regulators have narrowed the list of disputed items to only a few points.

The proposed bill would set a clearer legal framework for digital assets in the United States. It would also define how oversight is shared between the Securities and Exchange Commission and the Commodity Futures Trading Commission.

JPMorgan said in a recent report that discussions around the CLARITY Act are moving toward completion.

According to the bank, officials involved in the talks now see only two or three issues still unresolved. That marks a clear reduction from the longer list of disputed points seen earlier in the process.

The report said debate around stablecoin rewards has also moved closer to common ground. One senior policy official said the topic is now in a better place after weeks of discussion.

That crypto news added to signs that lawmakers are working toward a compromise that both parties can accept.

The CLARITY Act has remained one of the main proposals for digital asset regulation in the United States. It is designed to set clear rules for how crypto assets should be treated under federal law. Lawmakers have spent months trying to settle key points before releasing a final version.

JPMorgan’s assessment placed attention on how close the talks may be to a formal outcome. The bank said lawmakers appear to be approaching a workable agreement. Even so, no final bill text has been released yet.

The CLARITY Act is expected to set clearer lines between the SEC and the CFTC. That division has remained one of the main issues in U.S. crypto policy. A finalized framework would help determine which agency oversees different digital assets and platforms.

Token classification remains one of the areas still under discussion. Lawmakers are working on how to define when a digital asset should fall under securities rules and when it should be treated differently.

That decision would shape how issuers, exchanges, and investors operate under federal law.

Per the crypto news, the bill also covers stablecoins and decentralized finance platforms. Those areas have drawn close attention because they do not fit neatly into older financial rules.

A final agreement would give firms a better idea of which rules apply and which regulator has primary authority.

Lawmakers familiar with the process said the draft legislation is now very close. The remaining questions involve DeFi oversight and how certain tokens should be classified. Those issues are still being negotiated as both sides work to close the final gaps.

One of the main topics in the talks is whether stablecoin issuers should be allowed to offer reward-like returns to users.

Banks have opposed that structure because they say it can resemble deposit-taking activity. They argue that such products should not operate outside the safeguards applied to traditional financial institutions.

Crypto firms, on the other hand, have pushed for room to offer broader services tied to stablecoins. That has made the rewards debate one of the most watched parts of the CLARITY Act process.

JPMorgan said the latest proposals could gain support from both crypto firms and traditional financial institutions.

That part of the negotiation matters because stablecoins remain a central part of digital asset markets.

Their use in payments, trading, and settlement has kept them at the center of policy discussions. A clearer rulebook could set the terms for how issuers structure those products in the United States.

Although progress has been reported, the bill still faces timing questions. Congress has not scheduled a formal vote, and the final legislative language is still pending. That crypto news leaves room for delays even as negotiations move closer to closure.

JPMorgan said the 2026 midterm elections could affect the path forward. The bank noted that Democrats could regain control of the House of Representatives. If that happens, the legislative agenda could shift, and crypto policy may move more slowly.

Policy advisers involved in the process have still described the talks in positive terms. One adviser said there is no perfect bill, which suggests that compromise remains part of the strategy. That approach may help lawmakers move past the remaining disputes.

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