US Clarity Act faces tight Senate timeline amid midterm elections

The proposed Clarity Act, a U.S. bill that would reshape the regulatory framework for stablecoins, cleared the Senate Banking Committee on May 14 but still requires 60 votes in the full Senate, reconciliation with the House version and a presidential signature. The legislation seeks to ban passive interest‑like yields on stablecoin balances while permitting rewards tied to payments, loyalty programs and platform activity.

Major banks, led by JPMorgan, are opposing the bill’s current language, arguing that stablecoin platforms should not offer deposit‑like products without traditional banking oversight. JPMorgan CEO Jamie Dimon has warned that banks will push back if the bill allows such yields. Treasury Secretary Scott Bessent and pro‑crypto lawmakers remain optimistic, calling the bill essential for the future of digital assets.

Analysts note that the legislative window is narrowing as the 2026 U.S. midterm election cycle intensifies, potentially delaying or reshaping the bill. A decentralized prediction market, Polymarket, shows a slim majority (51%) betting on the act’s passage this year. The outcome will influence how crypto firms compete with traditional banks and could shift idle crypto cash toward tokenized Treasury products or other regulated instruments.