Here’s Why CLARITY Act Could Be Delayed to May Amid Yield Dispute

Key Insights:

• Tillis wants the Senate Banking Committee to delay the CLARITY Act markup until May.
• Stablecoin yield talks between banks and crypto firms remain unresolved ahead of Friday’s decision.
• Polymarket odds of the CLARITY Act passing this year fell to 50% from 64%.

The Senate Banking Committee may not move the CLARITY Act in April. Senator Thom Tillis pushed to slow the process. Tillis said negotiators need more time to work through a dispute over stablecoin yield before the panel holds a markup.

The delay talk comes during a key week for the bill, as lawmakers face a Friday window to schedule action for the week of April 27. Banking groups are still pressing lawmakers to tighten or block yield-related language. However, the crypto firms want the bill to keep moving

Senator Tillis Pushes for More Time Before Senate Action

Senator Thom Tillis told Senate Banking Committee Chair Tim Scott not to advance the crypto market structure bill in April. He urged the committee to delay action.

Tillis said lawmakers should look at May for a markup instead. He also told reporters that he does not want to accelerate the process before all sides are heard.

Tillis’s position matters because he has been involved in talks with banking groups, crypto companies, and lawmakers. He focused those discussions on how to treat stablecoin yield.

Recent reporting said Tillis and Senator Angela Alsobrooks reached an agreement in principle with the White House on yield provisions. The text of that agreement is not yet final.

That leaves committee staff and negotiators with more work before the bill is ready for floor-facing committee action.

Stablecoin Yield Remains the Main Sticking Point

The core dispute centers on whether stablecoin-related rewards or yield should be allowed under a federal market structure framework.

Banks argue that stablecoin interest‑like returns could pull deposits away from regulated lenders. They warn this shift may raise funding pressure across the banking system.

The American Bankers Association continues to challenge language in the bill. It believes the wording could allow yield through third‑party rewards or similar structures.

Crypto firms and industry groups pushed back on that view. They want lawmakers to preserve room for product design tied to digital assets and on‑chain finance.

The divide has already slowed federal talks before. In February, a White House meeting between bank and crypto representatives ended without a deal, with stablecoin interest remaining the central issue. That earlier deadlock now appears to be carrying into the Senate timetable again

This Week Could Decide Whether Markup Slips into May

The timing matters because the Senate Banking Committee must act soon. It needs to move if it wants to hold a markup during the week of April 27.

In contrast, the committee is also handling Kevin Warsh’s nomination hearing on Tuesday, April 21, at 10 a.m. EDT. That adds pressure to the schedule. With unresolved bill language and a crowded committee calendar, a move into May has become more likely.

Treasury Secretary Scott Bessent has been urging Congress to pass the CLARITY Act. He is saying that the United States needs clear federal rules for digital assets. Even so, the renewed fight over yield has kept the bill from reaching a clean path forward.

For now, lawmakers may use the extra time to try to settle the bank-crypto compromise before any committee vote is scheduled.

The bill’s uncertain timeline is now being reflected in market sentiment. Polymarket’s contract on whether the CLARITY Act will be signed into law in 2026 was recently trading around 47%. This shows weaker conviction than earlier expectations.

The next step depends on whether Senate negotiators can settle the yield issue in the coming days. If that does not happen before the committee’s scheduling window closes, the markup could move to the second week of May.

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