A US senator has reportedly urged Senate Banking Chair Tim Scott to delay the markup for the crypto market structure bill until May, as banking and crypto representatives need more time to resolve disagreements over stablecoin yield provisions.
US Republican Thom Tillis of North Carolina told reporters Monday that he does not expect the Senate Banking Committee to mark up the legislation, also known as the CLARITY Act, in April and has recommended that Scott schedule it for next month, according to Punchbowl News.
Tillis, who has been leading discussions between crypto and banking members, reportedly told Scott: “It’s very important to me not to accelerate things, to hear everybody, and give them a rational basis for what we do accept.”
Continued delays have sparked concern that the CLARITY Act may not pass before the US midterms in November, an event that US Treasury Secretary Scott Bessent said could reverse momentum of the bill.
“I think if the Democrats were to take the House, which is far from my best case, then the prospects of getting a deal done will just fall apart,” Bessent said in March.
CLARITY Act cannot wait any longer, crypto group says
It comes the same day crypto advocacy group The Digital Chamber sent a letter to the Senate Banking Committee asking it to move the crypto market structure legislation forward to a Senate markup “as soon as the calendar allows.”
Related: Bessent ramps up pressure on Congress to pass CLARITY Act
The banking industry has raised concerns that allowing stablecoin yield could trigger significant deposit outflows from the traditional banking system, particularly at community banks.
It argues that those banks may not have enough balance-sheet flexibility to absorb such outflows without relying on higher-cost wholesale funding.
Meanwhile, Coinbase CEO Brian Armstrong and others have pushed for more favorable stablecoin provisions.
Last month, members of the banking and crypto industries were reportedly close to agreeing on enabling stablecoin rewards tied to crypto activity on third-party crypto platforms, but not for passive balances.
The Digital Chamber noted that it has now been more than 270 days since the House passed the CLARITY Act with bipartisan support.
“Clarity cannot wait,” The Digital Chamber’s government affairs director, Taylor Bar,r said, adding: “More than 70 million Americans who have embraced digital assets deserve the regulatory clarity they have waited far too long for.”
Other members of the crypto industry have argued that moving the bill forward is more important than holding out for perfect terms.
Magazine: Will the CLARITY Act be good — or bad — for DeFi?
