Senator Tillis Requests Postponement of CLARITY Act Markup to May: Sources
Republican Senator Thom Tillis has requested that the Senate Banking Committee postpone the CLARITY Act markup until May at the earliest, pointing to unresolved disputes regarding stablecoin yield provisions.
According to reports, a United States senator has called on Senate Banking Chair Tim Scott to postpone the markup process for the cryptocurrency market structure legislation until May, as representatives from the banking sector and crypto industry require additional time to address disputes concerning provisions related to stablecoin yield.
Republican Senator Thom Tillis from North Carolina informed reporters on Monday that he does not anticipate the Senate Banking Committee will conduct the markup of the legislation, which is also referred to as the CLARITY Act, during April and has suggested that Scott arrange it for the following month, as reported by Punchbowl News.
Tillis, who has been spearheading negotiations between members from the crypto and banking sectors, reportedly conveyed to Scott: "It's very important to me not to accelerate things, to hear everybody, and give them a rational basis for what we do accept."
Repeated postponements have generated concerns that the CLARITY Act might not be approved before the US midterm elections in November, an occurrence that US Treasury Secretary Scott Bessent indicated could undermine the bill's forward momentum.
"I think if the Democrats were to take the House, which is far from my best case, then the prospects of getting a deal done will just fall apart," Bessent said in March.
CLARITY Act cannot wait any longer, crypto group says
The development arrives on the same day that crypto advocacy organization The Digital Chamber delivered a letter to the Senate Banking Committee requesting it to advance the cryptocurrency market structure legislation to a Senate markup "as soon as the calendar allows."
The traditional banking sector has expressed concerns that permitting stablecoin yield could lead to substantial deposit withdrawals from the conventional banking system, especially affecting community banks.
The sector contends that these banks may lack sufficient balance-sheet flexibility to manage such withdrawals without depending on more expensive wholesale funding sources.
In the meantime, Coinbase CEO Brian Armstrong and other industry leaders have advocated for more accommodating stablecoin provisions.
In the previous month, representatives from both the banking and cryptocurrency sectors were reportedly near reaching an agreement on allowing stablecoin rewards connected to crypto activity on external crypto platforms, though not for idle balances.
The Digital Chamber highlighted that it has now been over 270 days since the House of Representatives approved the CLARITY Act with support from both parties.
"Clarity cannot wait. More than 70 million Americans who have embraced digital assets deserve the regulatory clarity they have waited far too long for."
Taylor Barr, The Digital Chamber's government affairs director
Additional members of the cryptocurrency sector have maintained that advancing the legislation is more critical than waiting for ideal provisions.