TLDR
- Senator Thom Tillis is demanding Senate Banking Committee Chair Tim Scott schedule a markup session for the crypto regulatory framework legislation
- With the Senate reconvening May 11, Tillis advocates for a mid-May hearing to advance the bill
- Major disputes center on stablecoin yield restrictions, government official ethics requirements, and legal safeguards for DeFi developers
- Coinbase withdrew endorsement earlier this year following inclusion of language prohibiting exchanges from offering stablecoin yield payments
- Approximately 11 weeks remain in the legislative calendar before electoral politics dominate proceedings
Senator Thom Tillis announced Wednesday his intention to pressure the Senate Banking Committee toward scheduling a decisive vote on the languishing cryptocurrency market structure legislation, formally titled the CLARITY Act.
Addressing reporters, Tillis outlined his strategy to request Committee Chair Tim Scott advance the legislation through a markup hearing following the Senate’s May 11 return to session.
“Without establishing a concrete markup deadline, those who prefer to delay progress indefinitely will continue finding additional concerns to raise,” Tillis explained.
The proposed legislation aims to establish clear jurisdictional boundaries between the SEC and CFTC regarding cryptocurrency oversight. While the House approved its corresponding version in July 2025, the Senate counterpart remains mired in procedural obstacles.
The primary source of contention involves stablecoin yield compensation. Coinbase rescinded its backing in January following the insertion of language prohibiting cryptocurrency platforms from distributing stablecoin yields to users.
Traditional banking industry representatives have lobbied aggressively to retain this restriction. Their position maintains it eliminates a regulatory gap in the GENIUS Act, which already prohibits stablecoin issuers themselves from providing yield.
Tillis indicated his assessment that banking sector objections have been substantially resolved. While acknowledging continued openness to dialogue with financial institutions, he emphasized his unwillingness to allow indefinite postponement.
Stablecoin Yield Ban and Government Ethics Language Remain Contentious
Tillis committed to distributing the revised legislative text to interested parties no fewer than four days prior to any scheduled markup proceeding.
Regarding ethics stipulations, Tillis stated Monday his opposition to the bill’s passage without provisions restricting how public officials may financially benefit from or publicly endorse cryptocurrency assets.
“Ethics safeguards must be incorporated into the legislation before Senate passage, or my role will shift from negotiator to opponent,” Tillis declared.
Observers widely interpret this requirement as directed toward President Trump and his relatives, who maintain documented financial stakes in the cryptocurrency sector.
DeFi Developer Legal Protections Create Additional Complication
A separate outstanding matter concerns liability shields for software engineers creating decentralized finance applications.
Senator Chuck Grassley, serving as Judiciary Committee chair, has asserted these elements require review by his committee before incorporation. This jurisdictional claim threatens additional procedural delays.
Tillis stated Wednesday he “generally supports” the framework Senator Cynthia Lummis has developed for this component.
Cody Carbone, Digital Chamber CEO, observed: “We’re seeing unprecedented momentum building toward a May markup.”
Roughly 11 weeks remain available on the Senate’s working calendar before campaign season activities consume legislative attention. Should the Senate approve the measure, reconciliation with the House version passed in 2025 would follow.
