Key Takeaways

  • Senator Thom Tillis urges Senate Banking Committee Chair Tim Scott to set a markup hearing date for crypto market structure legislation
  • Senate reconvenes May 11, with Tillis advocating for a mid-May committee vote
  • Contentious elements include regulations on stablecoin yields, ethics requirements for officials, and legal shields for DeFi developers
  • Coinbase withdrew backing in January following insertion of language prohibiting exchanges from offering stablecoin yields
  • Approximately 11 weeks remain on the Senate calendar before election-year politics dominate

Senator Thom Tillis announced Wednesday his intention to pressure the Senate Banking Committee toward scheduling a vote on crypto market structure legislation, formally called the CLARITY Act.

Tillis informed reporters of his plan to approach Committee Chairman Tim Scott about advancing a markup hearing following the Senate’s return 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 said.

The legislation would establish jurisdictional boundaries for SEC and CFTC oversight of digital assets. While the House approved its companion measure in July 2025, the Senate counterpart has encountered multiple roadblocks.

The primary obstacle centers on stablecoin yield regulations. Coinbase rescinded its endorsement in January following the inclusion of language preventing crypto platforms from distributing stablecoin yields to users.

Banking industry advocates have defended retaining this clause. Their position frames it as eliminating a gap in the GENIUS Act, which already prohibits stablecoin issuers from distributing yields.

Tillis indicated his belief that banking sector concerns have received substantial attention. He emphasized that while financial institutions remain free to continue negotiations, he refuses to delay proceedings indefinitely.

Stablecoin and Ethics Language Remains Under Discussion

Tillis committed to distributing updated legislative text to interested parties no fewer than four days ahead of any markup session.

Regarding ethics components, Tillis stated Monday his opposition to the measure without provisions restricting how government personnel can benefit from or 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 said.

Observers broadly interpret this requirement as addressing President Trump and family members holding crypto investments.

DeFi Developer Protections Encounter Jurisdictional Challenge

An additional unresolved matter concerns liability protections for programmers creating decentralized finance applications.

Senator Chuck Grassley, leading the Judiciary Committee, has indicated these elements belong under his panel’s jurisdiction. This requirement threatens additional timeline complications.

Tillis said Wednesday he is “generally in support” of the progress Senator Cynthia Lummis has made on that provision.

Cody Carbone, CEO of the Digital Chamber, said: “There is more momentum than ever for a markup in May.”

Approximately 11 weeks remain available on the Senate schedule before campaign activities consume legislative attention. Following Senate passage, the measure would return to the House, which advanced its version in 2025.