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 to stablecoin rewards in the Digital Asset Market Clarity Act. However, this may be coming to an end.
Tillis informed reporters on Wednesday that the work on the Clarity Act has addressed many of the concerns raised by banking lobbyists regarding the potential threat of stablecoin yield to interest-bearing deposits. The Republican lawmaker stated, 'I'm going to encourage the chair to move forward with the markup,' according to a Fox Business transcript.
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 hashed out for a Senate vote. Any further delays could jeopardize the 2026 Clarity Act due to the limited remaining Senate schedule. The legislation faces several hurdles, including a markup hearing that allows lawmakers to propose amendments to the language.
Tillis intends to give stakeholders the opportunity to review the compromise text on stablecoin yield before the hearing and has invited bankers to continue negotiations if they have other points to raise. 'There may be a few more that we can get there, 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 shared by Trump, who stated that he wouldn't let bankers 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 banning government officials from 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 in 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 additional delay to the bill will put its chances at risk, 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 issues to the bill's chances, but advocates are currently counting on the House to approve the Senate's final product.