US lawmakers are approaching a final version of the Digital Asset Market Clarity Act, a broad piece of legislation intended to set out the country’s first formal regulatory structure for cryptocurrencies. According to signals from the banking sector, most contentious points have now been resolved, with only a handful of issues remaining to be discussed before a potential vote.
Dividing regulatory oversight between agencies
The legislation is designed to settle longstanding disagreements over which federal agencies should regulate digital assets. It seeks to clarify and formalize the boundaries between the Securities and Exchange Commission, responsible for securities markets, and the Commodity Futures Trading Commission, which supervises derivatives and commodities.
Apart from agency jurisdiction, the bill proposes concrete definitions for fundamental crypto assets including tokens, stablecoins, and decentralized finance platforms. These clarifications would specify how such products fit into financial law and regulatory frameworks, addressing a gap that has left the industry in a patchwork of state and federal rules.
This legislation has been closely followed by market participants and policymakers who argue that clearer rules are essential for keeping the US competitive in digital finance. Some officials warn that regulatory uncertainty risks pushing crypto innovators and capital toward countries that have already established clearer legal standards.
Stablecoin yield compromise and industry response
One of the main sticking points in negotiations has been whether stablecoin issuers should be permitted to offer yield or yield-like features to users. Debate has centered on the fear that such services would resemble deposit-taking by traditional banks, but without equivalent protections for consumers.
Recent statements from banking sector analysts, including those at JPMorgan Chase, indicate that a middle ground has emerged. The draft bill would prevent stablecoin providers from offering passive yield, but make allowances for rewards earned through active use of crypto platforms, such as payments and transactions.
JPMorgan Chase is one of the world’s largest financial institutions, active in digital asset research and policy discussions. The bank serves as a key adviser for clients navigating regulatory changes and regularly publishes policy insights that influence lawmakers and the broader financial sector.
The White House had previously commissioned an economic analysis suggesting that yield bans would have a limited effect on bank lending but could lower returns for cryptocurrency users. The American Bankers Association, which lobbies on behalf of US banks, countered that the analysis overlooked potential risks to traditional lenders should stablecoin yields draw deposits away from community banks.
Policymakers involved in the process suggest the current framework “balances the banks’ concerns about safety with crypto industry calls for flexibility in product offerings.”
Legislative progress and timeline
Momentum behind the bill has been helped by bipartisan support in the House of Representatives, which passed an earlier version of the Digital Asset Market Clarity Act in 2025. Senate negotiators are now working through final details before advancing the legislation for a potential committee vote.
Despite this progress, the text of the final bill has yet to be released publicly, and no official vote is set. The timeline for introducing the legislation is seen as critical by observers, as the approach of the 2026 midterm elections threatens to shift priorities and slow the process.
With the most highly debated issues reduced to a short list, those involved in negotiations are expressing cautious optimism that a long-awaited regulatory framework for digital assets may soon reach the finish line.
