JPMorgan has signaled that negotiations over US digital asset legislation are moving closer to a breakthrough, with one of the most disputed issues — whether stablecoin issuers can offer yield-like products — now narrowing. Senate negotiators are working through the last details before a possible committee vote, though the final text has not been released and no official vote has been scheduled.
Bill aims to draw a clearer line between SEC and CFTC
At the center of the legislation is a long-running dispute over which federal agencies should regulate digital assets. The bill is intended to formalize the boundary between the Securities and Exchange Commission, which oversees securities markets, and the Commodity Futures Trading Commission, which supervises derivatives and commodities. That division would shape how large parts of the crypto market are classified and regulated.
The draft also proposes firmer definitions for tokens, stablecoins, and DeFi platforms. Those definitions are meant to show how each category fits within existing financial law, addressing a gap that has left the industry operating under a patchwork of state and federal rules across the US.
Passive yield may be barred while transaction-based rewards remain possible
The toughest point in the talks has been whether stablecoin issuers should be allowed to offer yield or yield-like features to users. Critics have argued that such products could resemble bank deposit-taking without the same level of consumer protection. That concern has kept the issue at the center of negotiations between the banking sector and crypto stakeholders.
Recent comments from banking analysts, including those at JPMorgan Chase, indicate that a compromise is taking shape. Under the draft framework, stablecoin providers would be blocked from offering passive yield, while rewards tied to active use of crypto platforms — such as payments and transactions — could still be allowed. Policymakers involved in the process have described the approach as an effort to balance bank safety concerns with the crypto industry’s push for flexibility in product design.
A White House-commissioned economic analysis had previously suggested that a yield ban would have limited effects on bank lending, though it could reduce returns for crypto users. The American Bankers Association disputed that conclusion, saying the analysis did not fully capture the risks traditional lenders could face if stablecoin products attract deposits away from community banks.
House support is in place, but the 2026 election calendar matters
Momentum has been helped by bipartisan backing in the House of Representatives, which passed an earlier version of the Digital Asset Market Clarity Act in 2025. In the Senate, negotiators are now focused on a shorter list of unresolved items, a sign that the legislative process has entered a more concentrated phase.
Even so, the final bill text remains unpublished and the timetable is still uncertain. Observers see the run-up to the 2026 midterm elections as a key constraint, since shifting political priorities could slow the process. With the most contested issues now reduced, people involved in the talks are expressing cautious optimism that a federal framework for digital assets may finally move closer to completion.