A push to delay the Senate markup of the CLARITY Act to May has emerged as disputes over stablecoin yield continue to stall progress.
Summary
- Senator Thom Tillis has urged a delay of the CLARITY Act markup to May as talks over stablecoin yield remain unresolved.
- Banking groups warn that yield-bearing stablecoins could pull deposits from community banks and raise funding costs.
- Crypto firms and advocacy groups are pushing lawmakers to move the bill forward despite ongoing disagreements.
According to Punchbowl News, US Senator Thom Tillis has advised Senate Banking Chair Tim Scott to skip an April markup of the crypto market structure bill, citing the need for more time to resolve differences between banking and crypto stakeholders.
Tillis, who has been leading talks between the two sides, made clear he is not in favor of rushing the process.
“It’s very important to me not to accelerate things, to hear everybody, and give them a rational basis for what we do accept,” he said.
Ongoing disagreement over stablecoin yield has kept the legislation from moving forward. Banking groups have warned that allowing yield on stablecoins could draw deposits away from traditional banks, with community lenders seen as the most exposed due to limited balance sheet flexibility and reliance on higher-cost funding if outflows rise.
Crypto firms have continued to press for more flexible rules. Recent discussions pointed to a possible middle ground that would allow rewards tied to crypto activity on third-party platforms, while excluding passive returns on idle holdings.
Calls to move ahead have grown louder despite the lack of full agreement. The Digital Chamber sent a letter to the Senate Banking Committee the same day, urging lawmakers to take the bill to markup “as soon as the calendar allows.”
“Clarity cannot wait,” said Taylor Barr, the group’s government affairs director. “More than 70 million Americans who have embraced digital assets deserve the regulatory clarity they have waited far too long for.”
Election timeline adds pressure
Questions have also surfaced around whether the bill can pass before the November midterm elections, which some see as a narrowing window for action.
US Treasury Secretary Scott Bessent had warned earlier that a political transition could derail the effort.
“I think if the Democrats were to take the House, which is far from my best case, then the prospects of getting a deal done will just fall apart,” he said in March.
More than 270 days have passed since the House cleared the CLARITY Act with bipartisan support, leaving industry participants increasingly concerned about delays.
Some within the crypto sector have started to argue that moving the legislation forward now may be more important than holding out for ideal terms, as negotiations over stablecoin rules continue.
