Finally settled—have things been sorted out? JPMorgan: Negotiations on the CLARITY draft of the Crypto Market Structure Law are nearing completion

JPMorgan indicates that negotiations on the U.S. CLARITY Act are nearing the finish line; the main disputes have been narrowed down to 2 to 3 items, and the development of the “stablecoin yield” topic is optimistic.

The U.S. cryptocurrency industry, which has been waiting a long time for good news, has finally received good signals about the CLARITY Act. JPMorgan’s latest report says that legislative negotiations on the CLARITY Act are close to the end, and all parties are expected to reach a final agreement in the short term.

In its Wednesday report, JPMorgan said that discussions between lawmakers and regulators show the bill is almost done, with only a small number of disputes still unresolved.

A senior policy official revealed that the list of disputed items, which originally ran to as many as a dozen-plus issues, has now been reduced to just “2 to 3 items”; as for the previously heated “stablecoin yield” topic, it is also developing in a more positive direction.

The three core areas of the CLARITY Act: Jurisdiction, Stablecoins, DeFi

The CLARITY Act is intended to bring a clearer regulatory framework to the cryptocurrency industry, including the division of jurisdiction between the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), and to set out clear rules for stablecoins and decentralized finance (DeFi) platforms.

Congressional figures involved in drafting the bill are highly optimistic. The report cites a Senate staffer familiar with the matter as saying the legislative draft “is close to completion,” with only a few issues left—such as DeFi regulation and token classification—which are expected to be resolved in the short term.

Across the entire bill, one of the most controversial focal points is whether to allow stablecoin issuers to offer users incentives similar to yields. In the past, this proposal faced strong backlash from traditional finance. Banks have questioned it, saying that this is tantamount to running a “deposit-taking” business without having equivalent regulation in place, especially in an environment where unregulated growth is booming.

However, JPMorgan remains optimistic that, with the latest version of the draft, it may win approval from both the cryptocurrency industry and traditional financial institutions.

Election Uncertainty Could Delay Legislative Progress

Despite the smooth progress, the road to passing the CLARITY Act is not foolproof. The final text of the bill has not yet been officially released, and Congress has not scheduled a specific timeline for voting. Some policy experts warn that if legislation is delayed, the bill could be pushed into an even more uncertain political environment.

JPMorgan points out that the outlook for the 2026 midterm elections is unclear, with market expectations that the Democratic Party may regain control of the House of Representatives. Once Congress’s political map is reshuffled significantly, cryptocurrency legislation may lose priority and drag down the bill’s progress.

• This article is reprinted with permission from: Block Beast
• Original title: Breakthrough Progress on the CLARITY Act! JPMorgan: Draft Legislation “Close to Completion”
• Original author: Block Sister MEL