Key Takeaways
- Senator Thom Tillis is urging Senate Banking Committee Chairman Tim Scott to calendar a markup session for the cryptocurrency market structure legislation
- With the Senate reconvening May 11, Tillis advocates for scheduling the hearing during mid-May
- Contentious issues encompass stablecoin interest payment regulations, governmental ethics requirements, and legal safeguards for decentralized finance creators
- Coinbase withdrew endorsement in January following inclusion of language prohibiting crypto platforms from offering stablecoin interest
- Approximately 11 weeks remain on the Senate schedule before campaign season dominates legislative focus
Senator Thom Tillis announced Wednesday his intention to pressure the Senate Banking Committee toward scheduling a decisive vote on the cryptocurrency market structure legislation, commonly referred to as the CLARITY Act.
Tillis informed members of the press that he intends to request Committee Chair Tim Scott advance the legislation with a markup session following the Senate’s return to session on May 11.
“Without establishing a definitive markup as a forcing mechanism, anyone genuinely opposed to passage will continuously identify additional discussion points,” Tillis remarked.
The proposed legislation would establish regulatory boundaries defining SEC and CFTC jurisdiction over the cryptocurrency sector. While the House approved its corresponding version in July 2025, the Senate iteration has encountered successive postponements.
The primary obstacle has centered on disputes regarding stablecoin interest payments. [[LINK_START_0]]Coinbase[[LINK_END_0]] retracted its backing in January after legislators incorporated language that would prohibit cryptocurrency exchanges from distributing stablecoin yields to account holders.
Banking industry advocates have campaigned to retain this restriction within the legislation. Their position argues it eliminates a regulatory gap in the GENIUS Act, which already prohibits stablecoin issuers from distributing yield.
Tillis indicated his belief that banking sector concerns have been substantially addressed. He emphasized that banking representatives remain welcome to continue negotiations, though he refuses to delay indefinitely.
Stablecoin Yield Ban and Government Ethics Language Remain Unresolved
Tillis confirmed his plan to distribute the revised legislative text to interested parties no less than four days prior to any markup proceeding.
Regarding ethics provisions, Tillis stated Monday he would oppose the measure if it fails to incorporate restrictions on government officials’ ability to financially benefit from or publicly endorse cryptocurrency.
“Ethics provisions must be included in the legislation before Senate passage, or I will transition from negotiating its terms to voting against it,” Tillis declared.
This requirement is broadly interpreted as directed toward President Trump and his relatives, who maintain financial stakes in cryptocurrency ventures.
DeFi Developer Legal Protections Encounter Jurisdictional Challenge
An additional outstanding matter concerns liability protections for software engineers developing decentralized finance applications.
Senator Chuck Grassley, serving as Judiciary Committee chairman, has indicated such provisions require initial consideration by his committee. This procedural requirement could introduce additional timeline complications.
Tillis stated Wednesday he remains “generally supportive” of the advancement Senator Cynthia Lummis has achieved regarding this provision.
Cody Carbone, CEO of the Digital Chamber, commented: “We’re seeing unprecedented momentum toward a May markup.”
The legislation faces approximately 11 weeks remaining on the Senate operational calendar before electoral considerations dominate congressional priorities. Should it achieve Senate approval, the measure would return to the House, which enacted its alternative version in 2025.
