Clarity Act Nears Breakthrough as Lawmakers Narrow Crypto Disputes

JPMorgan’s latest report shows negotiations over the Clarity Act in Washington have cut the number of disputed provisions from more than a dozen to two or three. Stablecoin reward features, oversight of decentralized finance platforms and how tokens are classified remain unresolved.

The Clarity Act would set the U.S. regulatory framework for digital assets, including how oversight is split between the Securities and Exchange Commission and the Commodity Futures Trading Commission. It would also define where stablecoins and DeFi platforms fit within federal financial rules.

Banking representatives raised concerns that stablecoin reward features could resemble deposit-taking without similar safeguards. JPMorgan reports the current draft places those reward features in a more workable position for the banking sector.

A senior policy official involved in the talks described the draft as “very near final form” and said only a few matters remain unsettled. No legislative text has been released and no committee vote is scheduled.

Negotiators say the bill must clear the Senate Banking Committee by mid-May to reach the Senate floor before Memorial Day. Senator Moreno warned that missing that window could push the measure into 2027, and Senator Cynthia Lummis cautioned that the 2026 election cycle could change the political landscape and delay action.

Treasury Secretary Scott Bessent urged federal rules for digital assets in a recent opinion piece, calling for legislation to provide clarity for investors and financial institutions.

If lawmakers resolve remaining questions on DeFi oversight and token classification, the draft could move to committee consideration. The measure will still need committee approval, Senate procedure and floor time before it can become law.