CLARITY ACT: Senator Thom Tillis Urges Senate Markup Delay Until May

Senator Thom Tillis has urged the U.S. Senate Banking Committee to postpone markup of the CLARITY Act until May as talks continue over stablecoin yield provisions. The request adds fresh uncertainty to the Senate timeline for the crypto market structure bill, which had been under pressure to move before the end of April. The delay push comes as banks and crypto industry groups continue to disagree over how the bill should treat rewards tied to stablecoin holdings.

CLARITY Act: Senator Thom Tillis Urges Senate Markup Delay Until May

Senator Thom Tillis told Senate Banking Committee Chair Tim Scott that the panel should not move forward with an April markup of the CLARITY Act. According to reports, the North Carolina senator said the committee should instead look toward May as the more workable target for advancing the bill.

He later told reporters that he did not expect the committee to mark up the crypto market structure legislation in April. Tillis wanted more time to hear from stakeholders and give negotiators room to settle the remaining points of disagreement before the panel takes action.

The senator’s remarks place fresh focus on timing inside the Senate. The bill has been viewed as a central part of the broader push to establish federal rules for digital assets, but the latest comments suggest that the timetable remains unsettled.

Stablecoin Yield Dispute Remains at the Center of Talks

The main sticking point remains stablecoin yield. Banks have pushed for tighter restrictions on interest-like rewards tied to stablecoin holdings, arguing that such products could pull deposits away from the traditional banking system. Crypto companies, by contrast, have argued that rewards remain important for market competition and user adoption.

Tillis has been involved in efforts to find a middle ground between those positions. His push for more time indicates that negotiators have not yet reached a final compromise that could win enough support inside the committee.

The disagreement has drawn strong lobbying on both sides. The American Bankers Association has continued its opposition to stablecoin yield provisions, while crypto groups have pressed lawmakers to preserve room for product offerings that are part of the sector’s business model.

That dispute weighed on Senate progress for months. In February, a White House meeting aimed at resolving the standoff ended without agreement, showing that the yield issue had already become one of the biggest obstacles to moving the legislation forward.

Senate Calendar Pressure Builds Around Committee Action

The latest debate comes during a narrow window for the committee to act. Reports indicate that this week is critical because Senate Banking would need to decide soon whether to hold a markup if lawmakers want a vote during the week of April 27.

That scheduling pressure has increased because other Senate business is competing for time. Coverage around the bill has pointed to added lobbying from banks and the committee’s broader agenda as factors that could push action into May.

A move into mid-May would not end the bill’s prospects, but it would narrow the runway for Senate consideration. The longer the markup slips, the less room lawmakers have to move the measure through committee and onto the Senate floor while other legislative priorities compete for attention. 

The latest setback has raised questions about whether the CLARITY Act can still pass this year. Prediction market traders have reduced their expectations from earlier highs as the Senate process loses momentum.

Clarity Act Predictions | Source: Polymarket

At the same time, officials inside the administration have continued to call for progress on crypto legislation. Earlier this year, the White House expected more meetings after the February talks failed to resolve the stablecoin yield dispute, suggesting that negotiations are still active even as the Senate timeline slips.

For now, the immediate focus remains on whether Senate Banking leaders keep the bill on an April track or shift it into May, as Tillis has proposed.