The U.S. Senate Banking Committee is in the final stages of negotiating the Crypto-Asset Reporting, Liquidity, and Investor Transparency (CLARITY) Act, aiming to finalize the bill by midnight on January 13. This bipartisan effort seeks to establish a comprehensive federal regulatory framework for digital assets, addressing jurisdictional boundaries between the SEC and CFTC, and setting rules for exchanges and stablecoin issuers. A key sticking point remains the treatment of revenue from stablecoin reserves, which could impact the bill's progress. The CLARITY Act, spearheaded by Senators Cynthia Lummis and Kirsten Gillibrand, represents a significant step towards regulatory clarity in the crypto industry, which has long operated under a patchwork of state regulations. The bill's passage could provide a clear compliance roadmap for exchanges and attract institutional investment by reducing legal uncertainty. However, the unresolved debate over stablecoin revenue distribution poses a challenge to meeting the deadline, potentially delaying the legislative process.