US Crypto Regulatory Framework Nears Completion as CLARITY Act Gains Momentum

Negotiations for the CLARITY Act are accelerating in Washington, with JPMorgan indicating that the U.S. crypto rulebook is nearing completion. According to a recent report, the number of unresolved issues has dropped from approximately twelve to just two or three, signaling a strong push toward a legislative breakthrough. The Act is designed to resolve the long-standing jurisdictional battle between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). By defining how digital assets, stablecoins, and decentralized finance (DeFi) platforms are governed, the bill seeks to integrate crypto assets into the formal U.S. financial system. A primary point of contention involves whether stablecoin issuers can offer yield-like rewards to users. While crypto firms favor this feature, traditional banks have expressed concern that such rewards could replicate deposit-taking without the necessary regulatory safeguards. However, JPMorgan suggests that current proposals may find common ground between both sectors. Despite the optimism, the path to enactment remains uncertain. No formal vote has been scheduled, and the final legislative text has not yet been released. Furthermore, the 2026 midterm elections introduce political risk; JPMorgan noted that if Democrats regain control of the House of Representatives, crypto legislation could lose priority, potentially slowing progress.