U.S. Senate crypto bill heads for renewed Banking Committee push

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Senate crypto bill revival

Highlights

Senator Thom Tillis will request a Senate Banking Committee markup for the stalled crypto market structure bill when the Senate returns on May 11.
The Senate bill has progressed after addressing lawmaker concerns but faces opposition over stablecoin yield bans, developer liability, and government crypto ethics restrictions.
Tillis insists on including ethics standards restricting government officials' crypto activity, making broader political agreement crucial for the bill's advancement.

Committee markup plans take shape

As reported by Cointelegraph, Senator Thom Tillis says he plans to ask Senate Banking Committee Chairman Tim Scott to schedule a markup for the stalled crypto market structure bill when the Senate returns on May 11. Tillis tells reporters that the legislation has made substantial progress and now needs the pressure of a formal committee process to move ahead.

Tillis says lawmakers have addressed many concerns tied to the bill, but argues that without a markup opponents will continue raising new objections. He also says he hopes to release the legislative text publicly at least four days before the markup, after crypto and banking stakeholders receive an advance preview.

The Senate bill is designed to set out how the U.S.’s two most influential financial market regulators would oversee crypto. The House passed its version, the CLARITY Act, in July, but the Senate proposal has faced repeated delays as lawmakers and lobbyists seek changes to key provisions.

Disputes over yields, ethics and developer rules

The Senate Banking Committee postponed the bill’s markup in January after Coinbase withdrew support over a provision that bans crypto exchanges from paying stablecoin yields. Banking lobbyists have pushed to keep that language in place, arguing it closes what they see as a loophole in the GENIUS Act, which bars stablecoin issuers from paying yield.

Other unresolved issues include ethics restrictions and legal protections for software developers. Politico reported on Tuesday that Tillis says the bill needs to address law enforcement concerns over a provision protecting crypto software developers from prosecution when others use their platforms for illegal activity, though he tells reporters he is generally supportive of progress made by Senator Cynthia Lummis on that issue.

Tillis also aligns himself with a demand backed by Senate Banking Democrats, saying he will not support the legislation unless it includes ethics language limiting how government officials can use and promote crypto. That condition highlights how the bill’s path now depends not only on industry compromises, but also on whether senators can secure broader political backing for governance standards around digital assets.

Our earlier coverage of negotiations over the Digital Asset Market Clarity Act explained that the bill was edging toward a Senate Banking Committee hearing after delays driven by disagreements over stablecoin rewards. We outlined Senator Thom Tillis’ push for a mid-May markup, along with remaining sticking points such as ethics limits for government officials and questions over legal protections for DeFi developers amid a tight Senate calendar.

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