The White House is intensifying efforts to advance the Clarity Act, a sweeping crypto market structure bill, by convening a meeting with law enforcement groups on Monday to resolve objections that have threatened to stall the legislation. The Trump administration, led by top crypto adviser Patrick Witt, aims to defuse tensions around Section 604 of the bill, which ties into the Blockchain Regulatory Certainty Act and would protect software developers from being classified as “money transmitters.” The National Sheriffs Association and other law enforcement organizations argued in a May letter to the Senate Banking Committee that the current language grants an overly broad exemption to mixers, tumblers, and DeFi protocols. Senate Majority Leader John Thune has indicated the bill could reach the floor in the coming weeks, though passage requires 60 votes and only four working weeks remain before the summer recess.
Meanwhile, JPMorgan executives continue to voice strong opposition to yield-bearing stablecoins, drawing comparisons to “shadow banking.” In a note published Monday, Global co-Head of JP Morgan Payments Umar Farooq and CEO of Digital Assets and Blockchain Solutions Peter Muriungi called for a comprehensive digital asset framework, implicitly referencing the Clarity Act. They warned that yield-bearing stablecoins could erode bank deposits, heighten run risk, and confuse consumers who expect familiar safeguards. The executives stressed that stablecoin oversight should mirror traditional deposit supervision and that robust anti-money laundering tools are essential. Last week, four U.S. law enforcement agencies sent a joint letter to the Department of Justice and the White House arguing the Clarity Act contains gaps that could hinder crypto crime investigations. Galaxy Research recently cut its estimate of the bill’s 2026 passage odds to 50%, down from 60%, citing timing and Senate calendar constraints.
