Key Takeaways
- Senator Thom Tillis is demanding that Senate Banking Committee Chairman Tim Scott schedule a markup session for the crypto regulatory framework legislation
- The Senate reconvenes May 11, with Tillis targeting a mid-May timeline for the hearing
- Major disagreements persist around stablecoin interest payments, government official ethics requirements, and legal safeguards for DeFi developers
- Coinbase withdrew its endorsement in January due to language prohibiting crypto platforms from offering stablecoin yields
- Approximately 11 weeks remain on the Senate schedule before campaign activities dominate the agenda
Senator Thom Tillis announced Wednesday his intention to pressure the Senate Banking Committee into scheduling a markup vote on the crypto market structure legislation, commonly referred to as the CLARITY Act.
According to Tillis’s comments to reporters, he intends to request that Committee Chairman Tim Scott advance the legislation with 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 between the SEC and CFTC regarding cryptocurrency oversight. While the House approved its companion measure in July 2025, the Senate counterpart has encountered numerous setbacks.
The primary obstacle centers on controversial stablecoin yield provisions. [[LINK_START_0]]Coinbase[[LINK_END_0]] retracted its backing in January following the inclusion of language that would prohibit cryptocurrency exchanges from distributing stablecoin yields to users.
Banking industry advocates have lobbied aggressively to retain this restriction. Their position maintains it addresses a regulatory gap in the GENIUS Act, which already prohibits stablecoin issuers from offering yield.
Tillis indicated he believes banking sector objections have been substantially resolved. He emphasized that while banks can continue negotiations, he refuses to postpone action indefinitely.
Ethics Rules and Stablecoin Provisions Remain Contentious
Tillis confirmed his plan to distribute the revised legislative text to interested parties no less than four days prior to any scheduled markup hearing.
Regarding ethics requirements, Tillis declared Monday he would oppose the legislation unless it contains provisions restricting how government officials can financially benefit from or publicly 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 emphasized.
This requirement is broadly interpreted as addressing President Trump and his relatives, who maintain substantial cryptocurrency holdings.
DeFi Developer Safeguards Encounter Jurisdictional Challenge
An additional outstanding matter concerns liability protections for programmers creating decentralized finance applications.
Senator Chuck Grassley, leading the Judiciary Committee, has insisted these provisions require review by his committee before advancing. This jurisdictional claim threatens additional postponements.
Tillis acknowledged Wednesday he is “generally in support” of the advancements Senator Cynthia Lummis has achieved 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 remain on the Senate’s working calendar before electoral priorities consume legislative activity. Should the measure pass the Senate, it would return to the House, which already approved its version in 2025.
