TLDR
- JPMorgan reported that lawmakers have reduced unresolved CLARITY Act issues to only two or three items.
- Senate staff said the CLARITY Act draft legislation stands very close to completion.
- Lawmakers continue discussions on token classification and decentralized finance oversight.
- Stablecoin reward features remain under debate as banks raise concerns over deposit-like structures.
- A senior policy official said discussions around stablecoin rewards are now in a good place.
Lawmakers in Washington have narrowed outstanding issues on the CLARITY Act, according to JPMorgan. The bank reported that negotiations now focus on only “2–3 issues.” Officials involved in talks said the draft stands “very close” to completion.
CLARITY Act Talks Narrow to Final Sticking Points
JPMorgan said lawmakers and regulators have reduced a list of disputed items from about a dozen to a few. The bank cited a senior policy official who described progress as steady. The official said discussions have reached “2–3 issues” that still require agreement.
Senate staff familiar with negotiations also expressed confidence about the timeline. One staffer said the draft legislation is “very close” to final form. Lawmakers continue to refine language on token classification and decentralized finance oversight.
The CLARITY Act seeks to define digital asset regulation in the United States. It outlines how the Securities and Exchange Commission and the Commodity Futures Trading Commission would divide oversight. It also addresses regulatory treatment for stablecoins and decentralized finance platforms.
Negotiators have worked to align agency authority under existing financial laws. They aim to create clear definitions for digital tokens and related services. Participants said they want workable standards that both regulators can enforce.
Stablecoin Rewards and Oversight Remain Central Issues
One of the remaining debates concerns stablecoin issuers offering yield-like rewards. Banks have opposed such features because they resemble deposit-taking activities. Industry groups have argued that innovation requires flexible product design.
A senior policy official said debate on stablecoin rewards now stands “in a good place.” Lawmakers have reviewed proposals that seek a balance between innovation and banking safeguards. Discussions have also covered how oversight should apply to decentralized finance platforms.
JPMorgan said emerging proposals could gain support from crypto firms and banks. The bank noted that policymakers appear willing to compromise on technical details. Officials have emphasized that no bill satisfies every stakeholder.
“There is no such thing as a perfect bill,” one policy advisor said. The advisor added that participants want a practical framework. Lawmakers have therefore focused on closing gaps rather than reopening settled sections.
JPMorgan also highlighted timing risks linked to the 2026 midterm elections. The bank said Democrats could regain control of the House of Representatives. Such a shift could alter legislative priorities and slow progress.
For now, lawmakers have not released final text or scheduled a formal vote. However, staff involved in drafting have maintained an optimistic tone. They have continued negotiations as of this week, according to JPMorgan’s Wednesday report.
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