The latest development in the bill aimed at integrating the crypto sector into the US financial system revolves around Senator Thom Tillis' request for bankers to have more time to negotiate the approach to stablecoin rewards. However, this may be coming to an end.
Tillis informed reporters that the work on the Clarity Act has addressed many concerns of banking lobbyists, who have been protecting the interests of interest-bearing deposits potentially threatened by stablecoin yield. The senator expressed his intention to encourage the chair to proceed with the markup. According to a transcript from Fox Business, Tillis stated, 'I'm going to encourage the chair to move forward with the markup.' This move could lead to a mid-May hearing by the Senate Banking Committee, a crucial step before the legislation can be finalized for a Senate vote. If the timeline is disrupted, it might jeopardize the 2026 Clarity Act due to the limited flexibility in the remaining Senate schedule.
The legislation still faces several obstacles, including a markup hearing where lawmakers can propose amendments. Tillis plans to share the compromise text on stablecoin yield with stakeholders before the hearing and welcomes bankers to continue negotiations if they have additional points to discuss. 'There may be a few more that we can get there, if they want to come and work in good faith,' Tillis said.
Crypto industry insiders have criticized the banking industry's apparent reluctance to accept compromises, a sentiment also expressed by Trump, who stated that he would not allow bankers to undermine the Clarity Act. The industry views Tillis' recent 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, an advocate 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 targeting Trump and his family.
Tillis has reportedly agreed that the bill needs such an ethics requirement, although this issue would not be addressed 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 DeFi developers, to pass through his committee. Any further delay to the bill would 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 US House of Representatives, which has already passed its own version of the Clarity Act. While potential issues may arise in the House, advocates are currently counting on the House to approve the Senate's final product.