The latest wait model for the bill to fully insert the crypto sector into the US financial system centered on Senator Thom Tillis’ request for bankers to be given more time to negotiate the Digital Asset Market Clarity Act’s approach to the controversial topic of stablecoin rewards. Maybe it’s over.
Tillis told reporters Wednesday that work on the Clarity Act — the industry’s main focus in Washington — had “addressed many of the concerns” of bank lobbyists who were defending the turf of interest-bearing deposits they said could be threatened by the stable yield of the coins. The Republican lawmaker said, “I’m going to encourage the president to move forward with the markup,” according to a Fox Business transcript of the remarks.
That could pave the way for a mid-May hearing of the Senate Banking Committee, which must advance the bill before a final version can be developed for a vote by the full Senate. If anything else gets in the way of that timeline, it could be fatal for the Clarity Act of 2026, as the Senate’s remaining schedule leaves little room for flexibility.
The legislation faces several hurdles before it can be signed into law by President Donald Trump and signed into law. The first is a so-called markup hearing that gives lawmakers the opportunity to propose amendments to the language. Tillis said he intended to give stakeholders the chance to see the stablecoin yield compromise text a few days before the hearing, and he invited bankers to stay in the negotiations if they wish to make other points.
“We might be able to recruit a few more, if they want to come to work in good faith,” Tillis said.
Crypto insiders have criticized the banking industry’s apparent unwillingness to compromise, as has Trump himself, who said over the weekend that he wouldn’t let bankers ruin the Clarity Act. The industry views Tillis’ latest remarks as a positive sign of movement.
“There is more momentum than ever for a markup in May,” said Cody Carbone, CEO of the Digital Chamber which advocates for crypto policy in Washington. “We support moving this bill onto the committee calendar as soon as possible, and we hope it will move forward imminently.”
Other tricky provisions remain to be worked out, including a Democratic-led section barring government officials from having personal business interests in crypto — an effort primarily aimed at Trump and his family, who are heavily engaged in the industry. Tillis reportedly said he agreed the bill required such an ethics requirement, although that issue would not be addressed in the Banking Committee’s work.
Another potential blockage crypto proponents are eyeing is pressure from Senator Chuck Grassley, chairman of the Judiciary Committee, that certain aspects of the legislation – including legal protections for decentralized finance (DeFi) developers – should pass through his committee.
Any further delay in the bill would jeopardize its chances of getting off the ground, with about 11 weeks remaining in the Senate calendar before lawmakers completely disperse for midterm election demands. Senate passage of the bill would then fall to the U.S. House of Representatives, which already passed its own version of the Clarity Act last year. Any uprising among House Republicans could add other problems to the bill’s chances, but supporters are so far counting on the House to approve the Senate’s final product.
The House has recently struggled to align with Senate efforts, particularly regarding funding for the Department of Homeland Security.
Read more: Crypto’s Big Hope in Senate Clarity Act Still Has Way to Survive Tight Timetable
