U.S. Senator Signals Readiness to Advance Clarity Act

The latest development in the bill to fully incorporate the crypto sector into the U.S. financial system has been centered on Senator Thom Tillis' request for bankers to have more time to negotiate the approach of the Digital Asset Market Clarity Act regarding stablecoin rewards. However, this phase 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 the territory of interest-bearing deposits that they argue could be threatened by stablecoin yield. The Republican lawmaker stated, 'I'm going to encourage the chair to move forward with the markup.' This could lead to a mid-May hearing of the Senate Banking Committee, which must 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 due to the limited flexibility in the remaining Senate schedule. The legislation faces several hurdles before it can be signed into law by President Donald Trump. First, a markup hearing is required, providing lawmakers with the opportunity to propose amendments to the language. Tillis intends to give stakeholders a chance to review the compromise text on stablecoin yield days before the hearing and has invited bankers to continue negotiations if they have other points they wish 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 insiders have been critical of the banking industry's apparent reluctance to accept compromises, a sentiment also expressed by Trump, who stated over the weekend that he would not 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 resolved, including a Democrat-driven section aimed at banning government officials from personal business interests in crypto, primarily targeted at Trump and his family, who are heavily involved in the industry. Tillis has reportedly agreed that the bill needs such an ethics requirement, although this issue would not arise during the Banking Committee's work. Another potential obstacle that crypto advocates are watching 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 additional delay to the bill will jeopardize its chances of advancing, 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 last year. Any opposition from House Republicans could add further challenges to the bill's prospects, but advocates are currently counting on the House to approve the Senate's final product. The House has recently struggled to align with Senate efforts, such as in the funding of the Department of Homeland Security.