U.S. Senate crypto bill nears markup as Clarity Act talks advance

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Senate crypto bill markup

Highlights

Senator Tillis reports progress on the Clarity Act addressing banking lobbyists' concerns over stablecoin yield, aiming for a mid-May Senate Banking Committee markup.
Key sticking points include a proposed ban on government officials holding personal crypto interests and Senator Grassley's attempt to involve the Judiciary Committee on DeFi legal protections.
With only 11 weeks left in the Senate session and pending House approval, further legislative delays threaten the Clarity Act's chances before midterm election demands intensify.

Markup timing and compromise talks

As first reported by Fox Business, Tillis tells reporters that work on the Clarity Act has addressed many of the concerns raised by banking lobbyists over stablecoin yield, and he says he is encouraging the committee chair to move forward with a markup.

The dispute has centered on whether stablecoin rewards could threaten banks' interest-bearing deposits, an issue that has slowed the industry's top market-structure priority in Washington. Tillis says he plans to give stakeholders several days to review compromise language on stablecoin yield before the hearing, while leaving room for further negotiations if participants continue to engage in good faith.

A mid-May hearing now appears possible, but the window is narrow. The Senate Banking Committee still needs to advance the legislation before a final version can be prepared for a vote by the full Senate, and further delays could imperil the Clarity Act's prospects in 2026 given limited floor time remaining.

Legislative risks and industry impact

Crypto advocates view Tillis' remarks as a positive signal for momentum, with Digital Chamber CEO Cody Carbone saying there is more momentum than ever for a markup in May and urging the bill to reach the committee calendar quickly.

Still, several sticking points remain. One is a Democratic-backed provision that would bar government officials from holding personal crypto business interests, an effort aimed mainly at President Donald Trump and his family; another is Senator Chuck Grassley's push to route some legal protections for decentralized finance developers through the Judiciary Committee.

Time pressure remains the central risk for the sector. With roughly 11 weeks left open in the Senate schedule before lawmakers turn to midterm election demands, any slippage could weaken the bill's path, after which the legislation would still need House approval even though the chamber passed its own version of the Clarity Act last year.

Our earlier report on the Senate Banking Committee’s advancement of Kevin Warsh’s Fed chair nomination explained how the panel voted along party lines to send the nomination to the full Senate amid intensifying political pressure on the central bank. We outlined lawmakers’ focus on interest rates, Federal Reserve independence, and Warsh’s views on digital assets, alongside questions tied to Jerome Powell-related scrutiny and potential conflicts.

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