CLARITY Act Markup Urged by Senator Tillis as Stablecoin Debate Nears Resolution

Key Insights:

• Senator Tillis is making efforts to advance the CLARITY Act markup on the Senate Calendar.
• He also revealed the potential timeline for the release of the stablecoin yield text.
• Senator Cynthia Lummis also remained optimistic about the crypto Bill’s passage as the yield debate nears resolution.

In Washington, the momentum is surging for crypto legislation. Senator Thom Tillis announced he is ready to advance the CLARITY Act to the next stage of the legislative process, following months of debate over stablecoin yields.

Senator Tillis Urges Advancing the CLARITY Act Senate Markup

As per Senator Tillis, he will seek to have the bill marked up when Congress returns from its May break. Eleanor Terret stated that Tills said, “I’m going to ask the chair to schedule a markup when we return. I think we’ve made a lot of progress, and it’s time to get it before the committee to move it forward.”

Currently, the bill faces a tight August deadline to ensure a smooth approval in 2026. For context, the CLARITY Act is a US crypto bill to create a regulatory framework for digital assets. It has long drawn criticism of the banking industry, especially over the yield on stablecoins.

The groups had expressed concerns about stablecoins with yield pulling deposits. Now, Senator Tillis said that those issues have been largely resolved. However, stakeholders can still do their part, he said, adding they can “come and work in good faith.”

Senator Tillis also proposed a timeframe for the CLARITY Act’s most controversial aspect. He revealed the timeline for the stablecoin yield draft. Tillis stated that he hopes to post the stablecoin yield text “4-5 days before a markup after stakeholders get a preview.”

The senator’s stance could be pivotal following previous reluctance in the Senate Banking Committee. His backing could mean Republicans have the votes to pass the legislation in committee, despite likely Democratic opposition.

Committee Chair Tim Scott had previously said that Republicans would have to be in agreement for a markup to happen.

Other Key Issues Around This US Crypto Bill

Aside from stablecoins, negotiations are now increasingly focusing on other outstanding issues in the CLARITY Act. These include provisions on decentralized finance (DeFi) and legal interpretations for software developers.

Tillis also commended the work of Senator Cynthia Lummis. He said he is “generally in support” of her efforts to resolve enforcement issues with existing laws.

The focus is also on how the provisions of the Blockchain Regulatory Certainty Act interplay with federal money transmitter legislation under a 1960 law. Law enforcement associations have raised concerns that shielding developers from liability would make it difficult to curb illicit activity.

Lummis, who has been heavily engaged in the CLARITY Act negotiations, said they are making headway on that. “We’ve made significant progress on safeguards for non-controlling developers with respect to money transmitting laws, and I hope to have more soon,” she said.

Negotiations on other provisions, including ethics measures, are also in the works. These provisions are not technically under the purview of the Senate Banking Committee, but are important to some legislators.

Thus, sources close to the negotiations say these provisions are more likely to be added later. They could possibly come into effect when the US crypto bill reaches the Senate floor.