Senator Thom Tillis has announced plans to push the CLARITY Act to a markup hearing in the Senate Banking Committee after the May recess, signaling significant progress in negotiations on the stalled crypto market structure bill. The Senate is set to return on May 11, and Tillis stated he will ask Committee Chair Tim Scott to schedule a markup shortly thereafter.
Progress on Stablecoin Yields
The most contentious issue—stablecoin yield rules—has seen substantial progress. Tillis indicated that banks' concerns about stablecoin yield provisions have been largely resolved. The bill originally included a provision that would ban crypto exchanges from paying stablecoin yields to customers, which led Coinbase to withdraw its support in January. Banking lobbyists had pushed to keep this provision, arguing it closes a loophole in the GENIUS Act that already bans stablecoin issuers from paying yield. Tillis stated that while bankers are still welcome to negotiate, he won't wait indefinitely and plans to publish the updated yield language four to five days before the markup hearing.
Developer Protections and DeFi Rules
With yield issues largely addressed, attention has shifted to developer protections and decentralized finance (DeFi) provisions. These include language tied to the Blockchain Regulatory Certainty Act and Section 1960 of the U.S. Code. Senator Cynthia Lummis has been working on safeguards for non-controlling developers under money transmission laws, and Tillis expressed general support for her approach. However, Senator Chuck Grassley, who chairs the Judiciary Committee, has said that developer protection provisions should go through his committee first, which could cause further delays.
Ethics Provisions
Another key sticking point is ethics language. Tillis has stated that he would vote against the bill if it does not include provisions limiting how government officials can profit from or promote crypto. This provision is widely seen as targeting President Trump and his family, who have financial interests in digital assets. Ethics rules may be added after the bill reaches the Senate floor, reflecting jurisdiction limits within the Senate Banking Committee.
Timeline and Next Steps
The bill faces a tight timeline, with approximately 11 weeks of Senate calendar time left before election season takes over. Lawmakers are targeting a May markup window, with an August deadline looming before a scheduled Senate recess. Cody Carbone, CEO of the Digital Chamber, noted: 'There is more momentum than ever for a markup in May.' If the Senate passes the CLARITY Act, it would go back to the House, which passed its own version in July 2025.
