The legislative window is narrowing, and the issue of whether stablecoins are profitable has stalled.

JPMorgan’s latest report shows that the window for the U.S. “Clarity Act” crypto market structure bill to pass this year is getting narrower as midterm elections approach. Although the bill was passed by the Senate Banking Committee on May 14, it still requires 60 votes to be approved by the full Senate, and it must be coordinated with legislation from the House of Representatives before it can be finally signed by the president. The debate between the banking industry and crypto companies over whether stablecoins are allowed to generate yields remains the biggest legislative obstacle. JPMorgan analysts said that if the legislation ultimately limits stablecoins’ passive income, the trend of idle crypto capital flowing into tokenized government bonds, digital currency market funds, and tokenized deposits is expected to accelerate. (CoinDesk)