The latest development in the bill to fully integrate the crypto sector into the U.S. financial system has been centered on Senator Thom Tillis' request for more time to negotiate the Digital Asset Market Clarity Act's approach to stablecoin rewards. However, this may now be coming to an end. Tillis informed reporters on Wednesday that the work on the Clarity Act has addressed many concerns of banking lobbyists, who have been defending their territory against potential threats from stablecoin yield.
The Republican lawmaker stated, 'I'm going to encourage the chair to move forward with the markup.' This could potentially lead to a mid-May hearing of the Senate Banking Committee, which needs to advance the legislation before a final version can be agreed upon for a Senate vote. If any further obstacles arise, it could jeopardize the 2026 Clarity Act, given the limited flexibility in the remaining Senate schedule. The legislation must first undergo a markup hearing, where lawmakers can propose amendments to the language. Tillis intends to share the compromise text on stablecoin yield with stakeholders before the hearing and has invited bankers to continue negotiations if they have other points to address.
'There may be a few more that we can get to, if they want to come and work in good faith,' Tillis said. Crypto industry insiders have been critical of the banking industry's apparent reluctance to embrace compromises, a sentiment shared by Trump, who stated over the weekend that he wouldn't allow bankers to undermine the Clarity Act. The industry views Tillis' latest remarks as a positive sign for progress.
'There is more momentum than ever for a markup in May,' said Cody Carbone, CEO of the Digital Chamber, which advocates for crypto policy in Washington. 'We support getting this bill on the committee calendar as soon as possible, and we are hopeful it will move imminently.' Other challenging provisions remain to be worked out, including a Democrat-driven section aimed at preventing government officials from having personal business interests in crypto, primarily targeted at Trump and his family.
Tillis has reportedly agreed that the bill needs such an ethics requirement, although this issue wouldn't arise during the Banking Committee's work. Another potential obstacle is Senator Chuck Grassley's push for certain aspects of the legislation, including legal protections for decentralized finance (DeFi) developers, to pass through his committee. Any further delay to the bill will jeopardize its chances, with approximately 11 weeks remaining in the Senate calendar before lawmakers disperse for midterm election demands. A Senate passage would then be handed over to the U.S.
House of Representatives, which has already passed its own version of the Clarity Act. Any opposition from House Republicans could add further complications, but advocates are currently counting on the House to approve the Senate's final product.