The U.S. Congress is advancing comprehensive crypto legislation, with the Clarity Act aiming to unlock trillions in institutional capital currently sidelined. Patrick Witt, Executive Director of the President’s Council of Advisors for Digital Assets, emphasized that regulatory clarity is crucial for significant institutional participation in digital assets. Witt highlighted ongoing negotiations addressing stablecoin regulation, SEC oversight, and CFTC authority. Witt noted that the House passed its version of the Clarity Act last July, while the Senate is progressing with its draft. Key issues include stablecoin rewards, token taxonomy, and decentralized finance oversight. Banking executives have expressed concerns that yield-bearing stablecoins could impact community bank deposits, while digital asset advocates argue that clear regulations would foster innovation and stability in the crypto sector.