A critical U.S. stablecoin bill faces potential delay until 2027 if lawmakers miss a fast-approaching mid-May deadline, JPMorgan warns in a new report. The bank indicates the Clarity Act has narrowed disputed issues from over a dozen to just two or three, signaling a significant legislative shift that could finally bring regulatory clarity to the crypto market's most debated sector.

JPMorgan says Clarity Act is nearing a breakthrough

JPMorgan reported that discussions in Washington show the Clarity Act is in its final stretch. A senior policy official said only a few matters remain unresolved, down from earlier stages of the talks. That shift implies lawmakers have made progress on the main points that had slowed the bill.

One of those points involved stablecoin rewards. For months, that debate remained a major obstacle as banks raised concerns that such features could resemble deposit-taking without the same safeguards. JPMorgan said the latest proposals now place that issue in a more workable position.

In addition, the officials involved in the discussions have also described the draft as very close to completion. The remaining questions reportedly focus on DeFi oversight and token classification, both of which continue to shape the final language of the bill.

Clarity Act focuses on regulatory structure

The Clarity Act aims to set out how digital assets should be regulated in the United States. At the center of the proposal is the division of oversight between the Securities and Exchange Commission and the Commodity Futures Trading Commission. That split has remained one of the most important parts of the broader legislative effort.

The bill also addresses how stablecoins and decentralized finance platforms would fit within existing financial rules. These provisions have drawn close attention because they would help define how key parts of the digital asset sector operate under federal oversight.

JPMorgan said current proposals could appeal to both crypto firms and traditional financial institutions. Even so, the final legislative text has not been released, and no formal vote has been scheduled.

Deadline pressure builds around Senate action

The bill’s path now depends on the timing. According to a Cryptopolitan report, Senator Cynthia Lummis has warned that if the Senate does not act before the 2026 election cycle changes the political landscape, the Clarity Act could face a delay lasting several years. Her comments have added pressure to ongoing negotiations in Washington.

In addition, Treasury Secretary Scott Bessent has also called for federal digital asset rules, arguing in a Wall Street Journal op-ed that regulation is important for attracting and retaining crypto investors in the United States. Meanwhile, debate continues around agency jurisdiction, stablecoin rewards, and DeFi provisions.

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