The CLARITY Act, a key bill to overhaul the U.S. digital asset regulatory framework, has reached a pivotal stage in Senate deliberations, a White House official said. Patrick Witt said final-stage talks are narrowing unresolved issues after Senate Banking Committee review. Negotiators are focusing on DeFi-related safe harbor language and rules on providing returns for stablecoins. Lawmakers are reported to be nearing a compromise that limits rewards for simple holding while allowing activity-based compensation.

JPMorgan has assessed that the chances have declined that the CLARITY Act, a U.S. cryptocurrency market structure bill, will pass this year. Although it cleared a Senate committee, it still faces a Senate floor vote, coordination with the House and a presidential signature, leaving its fate before the midterm elections uncertain. JPMorgan cited a tight legislative calendar and disputes over rules governing yield on stablecoin holdings.