Tillis urges Senate to delay CLARITY Act markup until May

Sen. Thom Tillis requested that Senate Banking Committee Chair Tim Scott move the CLARITY Act markup from April to May, saying negotiators need more time to resolve disagreements over stablecoin yield provisions. Tillis indicated he does not expect the committee to proceed in April and recommended scheduling the session for next month.

Tillis, who has been leading talks between banking and crypto stakeholders, told reporters he wants the process slowed so all parties can present their views and lawmakers can establish a reasoned basis for any decisions. He emphasized the importance of hearing from both industry and regulators before finalizing the bill’s language.

Banking groups have argued that permitting yields on stablecoins could prompt significant deposit outflows from traditional banks, especially community banks. They contend those institutions may lack the balance-sheet flexibility to absorb withdrawals without turning to more expensive wholesale funding.

Crypto firms and industry advocates counter that clear rules are needed to support new products and consumer use. Executives including Coinbase CEO Brian Armstrong have lobbied for provisions that would allow stablecoin yield in broader contexts, and some industry leaders continue to push for looser restrictions.

The trade group The Digital Chamber urged the committee to move the bill to markup as soon as possible in a letter, noting the House passed the CLARITY Act more than 270 days ago. In its communication, government affairs director Taylor Barr wrote, “Clarity cannot wait,” and argued that millions of Americans who use digital assets need clear rules.

Negotiators have been discussing a compromise that would permit rewards tied to active crypto activity on third-party platforms while restricting yields on passive stablecoin balances. That proposal was reported to be close to agreement last month but has not been finalized, and key details remain under negotiation.

Treasury officials and some lawmakers have warned that the legislative calendar matters. A Treasury official cautioned in March that a change in control of the House after the midterm elections could reduce the chances of reaching a deal.

The CLARITY Act seeks to create a regulatory framework for digital assets and stablecoins by clarifying which activities fall under securities, commodities or banking rules and by setting standards for issuers. Supporters say congressional action would provide legal certainty for market participants and investors, while opponents continue to call for careful provisions on yields and bank protections before the bill advances.