One of the most closely watched debates centers on whether stablecoin issuers should be allowed to offer yield-like rewards to users. The issue has drawn pushback from banks, which argue such features could replicate deposit-taking without the same regulatory safeguards.

The latest proposals could find support from both crypto firms and traditional financial institutions, according to JPMorgan.

Still, the path forward is not without risk. The final legislative text has yet to be released and no formal vote has been scheduled. Timing is also a factor, with some policy experts warning that delays could push the bill into a more uncertain political environment.

JPMorgan noted that the outlook for the 2026 midterm elections remains mixed, with expectations that Democrats could regain control of the House of Representatives. If that scenario plays out, crypto legislation could lose priority, potentially slowing further progress.

For now, the direction of travel appears clear. As one policy advisor put it, “there is no such thing as a perfect bill,” underscoring willingness among stakeholders to compromise in order to establish a workable framework.

If passed, the CLARITY Act would mark a major step toward integrating digital assets into the U.S. financial system, providing rules that industry participants have sought for years.

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Former Senator Sherrid Brown of Ohio (Jeff Swensen/Getty Images)

The Sentinel Action Fund is supporting Republican John Husted in that race, with funding from the Solana network’s advocacy group and Multicoin Capital.

What to know:

  • Former Senator Sherrod Brown, the ex-chairman of the Senate Banking Committee before his 2024 election defeat, will face a multi-million-dollar headwind from a PAC called Sentinel Action Fund, which is backed by some crypto interests.
  • The PAC said it’ll support Republican Senator Jon Husted with $8 million in that race,…

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