The latest holding pattern for the bill to fully insert the crypto sector into the US financial system centered on Senator Thom Tillis’ request that bankers be given more time to negotiate the Digital Asset Market Clarity Act’s approach to the contentious issue of stablecoin rewards. That may be over.
Tillis told reporters on Wednesday that work on the Clarity Act, the industry’s main focus in Washington, has “addressed many of the concerns” of banking lobbyists who have been making the case for interest-bearing deposits that they say could be threatened by the performance of stablecoins. The Republican lawmaker said, “I’m going to encourage the president to move forward with the margin,” according to a Fox Business transcript of the comments.
That could open the possibility of a mid-May hearing by the Senate Banking Committee, which needs to advance the legislation before a final version can be crafted for a vote by the broader Senate. If something else gets in the way at that point, it could be fatal for the 2026 Clarity Act, because the Senate’s remaining calendar has little room for flexibility.
The legislation faces several hurdles before it can reach President Donald Trump’s desk to become law. The first is the so-called markup hearing that gives lawmakers the opportunity to seek amendments to the text. Tillis said he intends to give interested parties a chance to see the compromise text on stablecoin performance days before the hearing, and welcomed bankers to stay in the negotiations if there are other points they want to convey.
“There may be a few more we can get there, if they want to come and work in good faith,” Tillis said.
Crypto experts have criticized the banking industry’s apparent reluctance to accept compromises, as has Trump himself, who said over the weekend that he would not let bankers ruin the Clarity Act. The industry is taking Tillis’ latest comments as a positive sign for the movement.
“There is more momentum than ever for a May markup,” said Cody Carbone, executive director of the Digital Chamber who advocates for crypto policy in Washington. “We support this bill being placed on the committee’s calendar as soon as possible and are hopeful that it will be passed imminently.”
Other difficult provisions still need to be resolved, possibly most notably a Democrat-led section that prohibits government officials from having personal business interests in cryptocurrencies, an effort aimed primarily at Trump and his family, who are heavily involved in the industry. Tillis has reportedly said he agrees that the bill needs such an ethical requirement, although this issue would not arise in the Banking Committee’s work.
Another potential issue that cryptocurrency advocates are watching is pressure from Senator Chuck Grassley, chairman of the Judiciary Committee, that some aspects of the legislation, including legal protections for decentralized finance (DeFi) developers, should pass through his committee.
Any further delays to the bill will jeopardize its chances of getting off the ground, with about 11 weeks left open on the Senate calendar before lawmakers fully disperse for the demands of the midterm elections. A Senate approval would then go 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 more problems to the bill’s prospects, but so far its proponents are counting on the House to approve the Senate’s final product.
Recently, the House has struggled to align with Senate efforts, such as funding the Department of Homeland Security.
Read More: Crypto’s Great Hope in Senate Clarity Act Still Has a Way to Survive Tight Schedule
