Quick Overview
- Senator Thom Tillis is demanding Senate Banking Committee Chair Tim Scott schedule a markup session for the cryptocurrency market structure legislation
- With the Senate reconvening May 11, Tillis aims for a mid-May hearing date
- Major obstacles include regulations on stablecoin interest payments, government official ethics standards, and legal safeguards for DeFi creators
- Coinbase withdrew endorsement in January due to a clause prohibiting crypto platforms from offering stablecoin interest
- Only approximately 11 weeks remain on the Senate schedule before electoral politics dominate
On Wednesday, Senator Thom Tillis announced his intention to pressure the Senate Banking Committee into scheduling a decisive vote on the cryptocurrency market structure legislation, commonly referred to as the CLARITY Act.
Tillis informed the press that he intends to request Committee Chairman Tim Scott advance the bill through a markup hearing following the Senate’s return to session on May 11.
“Until you have a forcing mechanism of a markup, everybody that really doesn’t want it done is going to have one more thing that they want to talk about,” Tillis stated.
The proposed legislation aims to establish clear jurisdictional boundaries for SEC and CFTC supervision of digital asset markets. While the House approved its corresponding version in July 2025, the Senate’s draft has encountered multiple postponements.
The primary obstacle centers on stablecoin interest provisions. [[LINK_START_0]]Coinbase[[LINK_END_0]] rescinded its backing in January following the insertion of language that would prohibit cryptocurrency exchanges from distributing stablecoin yields to users.
Traditional banking advocates have lobbied aggressively to maintain this restriction. Their argument centers on preventing regulatory arbitrage within the GENIUS Act, which already prohibits stablecoin issuers from paying interest.
Tillis indicated that banking sector concerns have been substantially resolved. While he remains open to continued discussions with financial institutions, he emphasized that delays cannot continue indefinitely.
Contentious Stablecoin and Government Ethics Language Remains
Tillis confirmed his plan to distribute the revised legislative text to interested parties no less than four days prior to any scheduled markup session.
Regarding ethics requirements, Tillis stated Monday he would oppose the measure unless it incorporates restrictions on how government personnel can financially benefit from or actively endorse cryptocurrency.
“There has to be ethics language in the bill before it leaves the Senate, or I’ll go from one of the people working on negotiating it to voting against it,” Tillis declared.
Observers widely interpret this requirement as directed toward President Trump and his relatives, who maintain substantial crypto holdings.
DeFi Developer Legal Protections Create Additional Complication
An additional unresolved matter concerns liability shields for programmers creating decentralized finance applications.
Senator Chuck Grassley, leading the Judiciary Committee, has insisted these sections must receive review from his panel before advancing. This jurisdictional question could introduce additional postponements.
On Wednesday, Tillis expressed being “generally in support” of Senator Cynthia Lummis’s work on this component.
Cody Carbone, CEO of the Digital Chamber, commented: “There is more momentum than ever for a markup in May.”
Approximately 11 weeks of legislative working days remain before campaign season effectively freezes Senate activity. Should the bill successfully navigate the Senate, it would return to the House for reconciliation with the chamber’s 2025-passed version.
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