CLARITY Act Passage Faces Uncertain Future Amid Stablecoin Yield Dispute
The passage of the CLARITY Act in the US Senate has been met with growing skepticism as JPMorgan analysts warn that the bill faces a narrowing path to passage this year.
The analysts, led by managing director Nikolaos Panigirtzoglou, issued their warning on June 4, citing several high-friction hurdles that must be cleared before the bill can become law.
The CLARITY Act would establish the first comprehensive federal framework for digital assets and resolve a long-running jurisdictional dispute between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) over which agency governs cryptocurrencies.
JPMorgan's analysts noted that the treatment of stablecoin yield has become a central point of disagreement between banks and crypto firms, with banks pushing for tighter language to prohibit passive yield and crypto firms seeking greater flexibility to offer yield-bearing products.