A U.S. senator has urged Senate Banking Chair Tim Scott to postpone the markup of the crypto market structure bill, known as the CLARITY Act, until May to allow more time for banking and crypto representatives to resolve disputes over stablecoin yield provisions.
Republican Senator Thom Tillis of North Carolina told reporters he does not expect the Senate Banking Committee to mark up the legislation in April and recommended scheduling the markup for May, according to Punchbowl News. Tillis, who has been leading talks between crypto and banking stakeholders, said: “It’s very important to me not to accelerate things, to hear everybody, and give them a rational basis for what we do accept.”
Delays have raised concerns the CLARITY Act might not clear Congress before the U.S. midterm elections in November. U.S. Treasury Secretary Scott Bessent warned that an electoral shift could halt progress: “I think if the Democrats were to take the House, which is far from my best case, then the prospects of getting a deal done will just fall apart,” he said in March.
Crypto advocacy group The Digital Chamber sent a letter to the Senate Banking Committee pressing for a markup “as soon as the calendar allows,” arguing regulatory clarity is urgent. The group noted it has been more than 270 days since the House passed the CLARITY Act with bipartisan support. “Clarity cannot wait,” said Taylor Barr, The Digital Chamber’s government affairs director, adding that more than 70 million Americans who use digital assets deserve regulatory certainty.
The core dispute centers on whether stablecoin yields should be permitted. Banking groups warn that allowing yields could trigger significant deposit outflows from traditional banks—particularly community banks—which may lack the balance-sheet flexibility to absorb such withdrawals without resorting to higher-cost wholesale funding. The banking industry has pushed for tighter limits to protect deposit stability.
On the other side, crypto leaders including Coinbase CEO Brian Armstrong have advocated for more permissive stablecoin provisions. Industry and banking negotiators were reportedly close last month to a compromise that would allow stablecoin rewards tied to crypto activity on third-party platforms, while excluding rewards on passive balances.
Some in the crypto sector argue advancing the bill, even without ideal terms, is preferable to further delay. The debate continues as stakeholders race to finalize language ahead of a Senate markup now expected in May.
