CLARITY Act Markup in US Senate Delayed Again — Potentially to May
Senator Tom Tillis indicated the Senate Banking Committee is unlikely to advance the CLARITY Act crypto bill in April. The stablecoin yield dispute between banks and crypto firms remains the key sticking point.
Senate Banking Committee Unlikely to Act in April
The markup of the CLARITY Act, a landmark crypto regulatory bill, has been pushed back once again in the US Senate. Senator Tom Tillis (R-NC) told Banking Committee Chair Tim Scott (R-SC) that the panel should not plan to advance the legislation in April, pointing instead to a potential May timeline.
The news surfaced through a report by Punchbowl News journalist Brendan Pedersen:
«News: Sen. Tillis (R-NC) told Senate Banking Committee Chair Tim Scott (R-SC) the panel should not plan to advance a major crypto bill in April. Negotiators need more time to finalize a bank-crypto compromise on stablecoin yield, Tillis said, pointing to a potential May markup» — Brendan Pedersen (@BrendanPedersen), original post
According to Tillis, negotiators need additional time to finalize a compromise between the banking sector and crypto companies.
Why This Matters
The CLARITY Act is one of the most consequential pieces of legislation for the US crypto industry. The bill aims to delineate the jurisdictions of the SEC and CFTC and establish whether specific digital assets qualify as securities or commodities. Each delay prolongs the regulatory uncertainty that has defined the American crypto landscape.
Disagreements over the bill's provisions were already reported back in February 2026. This latest postponement underscores the depth of the divide between traditional finance and the digital asset industry.
Stablecoin Yield Remains the Core Dispute
The primary obstacle to consensus is the provision governing stablecoin yield. Banking industry representatives fear that attractive returns on stablecoins could trigger a deposit flight from traditional financial institutions, threatening the financial stability of smaller banks.
The current draft of the bill would prohibit interest payments on idle stablecoin balances while still permitting yield generated through active asset operations. Crypto companies strongly oppose such restrictions, arguing they stifle innovation.
Digital Chamber Urges Lawmakers to Pick Up the Pace
Cody Carbone, head of the Digital Chamber, sent a letter to Banking Committee leadership urging senators to accelerate work on digital asset market structure rules. He argued that passing the legislation is essential to provide legal clarity for 70 million American crypto holders.
«Today, we sent a letter to @BankingGOP leadership urging the Committee to move digital asset market structure legislation to markup and continue improving the bill in a transparent, deliberative, and bipartisan manner.» — The Digital Chamber (@DigitalChamber), original post
The delay to May means the US crypto industry will continue operating under ambiguous rules for at least another month. The outcome of stablecoin yield negotiations will shape the final balance between traditional finance interests and digital asset innovation in the bill's ultimate form.
Frequently Asked Questions
What is the CLARITY Act?
The CLARITY Act is a proposed US bill designed to regulate the crypto market by defining the jurisdictions of the SEC and CFTC. It would classify digital assets as either securities or commodities, providing regulatory clarity for the industry.
Why was the CLARITY Act markup delayed to May 2026?
Senator Tom Tillis said negotiators need more time to reach a compromise between banks and crypto companies on stablecoin yield provisions. Banks fear high stablecoin returns could cause deposit outflows from traditional institutions.
What stablecoin restrictions does the CLARITY Act propose?
The current draft would ban interest payments on idle stablecoin balances while still allowing yield from active asset operations. Crypto companies oppose these restrictions, arguing they threaten innovation.
Who is pushing for faster CLARITY Act progress?
Cody Carbone, head of the Digital Chamber, sent a letter to Senate Banking Committee leadership urging them to accelerate work on the bill. He cited the need to provide legal clarity for 70 million American crypto holders.
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