Foreign media reports indicate that JPMorgan Chase warned in a report released on June 4th that the window for the US Congress to push through the CLARITY bill this year is narrowing. Besides the approaching midterm elections, whether stablecoins can pay returns to holders has become a major point of contention in the bill's progress.
The bill targets the federal regulatory framework.
The goal of the CLARITY Act is to establish a more comprehensive federal regulatory framework for digital assets, clarifying which tokens are regulated by the U.S. Securities and Exchange Commission (SEC) and which are regulated by the U.S. Commodity Futures Trading Commission (CFTC), and providing clearer rules for issuers, trading platforms, and investors.
The article states that this bill has garnered significant industry attention because US cryptocurrency regulation has long relied on enforcement and litigation, with the classification of tokens as securities or commodities often requiring court rulings on a case-by-case basis. Supporters believe that if the bill is passed, it could increase institutional participation and help reduce the relocation of companies due to regulatory ambiguity.
Stablecoin yield terms are stalled.
JPMorgan Chase believes the biggest obstacle lies in the stablecoin yield arrangement. The crux of the dispute is whether stablecoin issuers can pay holders returns similar to interest.
The crypto industry supports stablecoins with yield features, believing that such products have the potential to attract more dollar funds to remain on-chain. The banking sector, however, is explicitly opposed, arguing that if stablecoins could pay yields, they could directly compete with traditional bank deposits, eroding banks' low-cost deposit base.
The report mentions that the current draft bill attempts a compromise: prohibiting the direct payment of "passive income" to the balance, but allowing rewards linked to specific activities. However, JPMorgan analysts believe that the bill text does not explicitly prohibit "balance interest" enough, leaving room for interpretation, and therefore has failed to quell the controversy.
The Senate schedule is running out.
U.S. Senators Thom Tillis and Angela Alsobrooks proposed a compromise on stablecoin yields, but banking lobbying groups subsequently opposed it. The report cites information stating that members of the American Bankers Association sent over 8,000 letters to the Senate office criticizing the compromise as being too favorable to the crypto industry.
The article states that even if the stablecoin disagreement is resolved quickly, the CLARITY bill still faces a tight legislative schedule. The bill passed the Senate Banking Committee on May 14, but it still needs the full Senate vote (60 votes) and must be reconciled with the House version before finally being sent to the president for signature.
JPMorgan Chase described these steps as a "high-friction" process. According to reports, the Senate will essentially adjourn in August, and after senators return to their posts, they will enter the campaign phase leading up to the November midterm elections, leaving few weeks for bill scheduling and voting.
Additional information:The report also mentioned that U.S. Treasury Secretary Scott Bessent had urged lawmakers to push the bill through this summer, but as of June, the bill had not shown sufficient momentum. Galaxy described its chances of passing the bill this year as "roughly 50/50, or even lower."
