U.S. Senate crypto bill markup faces push into May amid stablecoin dispute

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Senate crypto bill delay

Highlights

Senator Thom Tillis asks for U.S. Senate Banking Committee markup of the CLARITY Act to be postponed from April to May due to ongoing stablecoin disputes.
Banking and crypto industries remain divided over whether stablecoin holders should earn yield, with banks warning about deposit outflows from community banks.
Delays in CLARITY Act markup increase concerns about passage before November midterms, as more than 270 days have passed since House approval and industry pressure mounts.

Markup timing shifts amid industry talks

Punchbowl News reports that Republican Senator Thom Tillis of North Carolina is urging Senate Banking Chair Tim Scott to postpone the committee markup of the CLARITY Act until May rather than move ahead in April.

Tillis, who is leading discussions between crypto and banking representatives, says the industries still need more time to resolve disagreements over stablecoin provisions. He tells reporters that it is important not to accelerate the process and to hear all sides before deciding what language to accept.

The debate centers on whether stablecoin holders should be allowed to earn yield. Banking groups argue that such a framework could pull deposits away from the traditional banking system, especially from community banks, which they say may lack the balance-sheet flexibility to absorb those outflows without turning to more expensive wholesale funding.

Political pressure builds around passage prospects

Continued delays are fueling concern that the CLARITY Act may not pass before the November U.S. midterms. Treasury Secretary Scott Bessent says in March that if Democrats were to take the House, the prospects for reaching a deal could fall apart.

Pressure to advance the bill is also coming from the crypto industry. The Digital Chamber sends a letter to the Senate Banking Committee calling for the market structure legislation to move to markup as soon as the calendar allows, saying more than 270 days have passed since the House approved the CLARITY Act with bipartisan support.

At the same time, parts of the crypto sector are pushing for more favorable stablecoin terms. Coinbase CEO Brian Armstrong and others back broader provisions, while reports last month indicate banking and crypto groups were nearing a compromise that would allow stablecoin rewards tied to crypto activity on third-party platforms, but not on passive balances.

Our earlier coverage of the rebound in U.S. crypto adoption highlighted a March pickup in retail participation alongside renewed institutional inflows into bitcoin ETFs. We also noted that, despite steadier trading and bitcoin’s continued dominance among investors, expectations for end-2026 prices remained cautious.

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