After months of delay, the Senate appears to be approaching a decisive moment for the long-awaited CLARITY Act. This week could finally help determine whether lawmakers can move the bill forward—or whether additional negotiating pressure will push momentum into mid-May.
Banks Pressure Banking Committee Members
A Monday report from Crypto In America’s Eleanor Terrett said the Senate Banking Committee has until Friday to formally notice a markup of the CLARITY Act if it plans to hold a vote during the week of April 27. However, the timing may be under strain.
Pressure from the traditional banking sector that wants to weigh in on the stablecoin yield—paired with Sen. Thom Tillis’ stated interest in hearing those concerns—could mean the markup is postponed to the second week of May, when the Senate returns from recess.
Terrett previously reported that Tillis’ office has been facing a targeted pressure campaign from banking groups, including the North Carolina Bankers Association.
These groups are reportedly unhappy with the scope of stablecoin yield restrictions included in the current version of the act. Their message to banking members is straightforward: contact Tillis’ staff and make their concerns known, according to the reporting.
The push does not appear to be limited to Tillis. Industry groups have also been reaching out to other members of the Banking Committee beyond Tillis and Angela Alsobrooks, who are described as the lead negotiators.
In the latest phase of bargaining, a compromise was reportedly reached late last month that the crypto industry says it is largely satisfied with—or at least not openly opposing. Even so, the CLARITY Act text has not been released to the public.
What’s Still Unsettled In The CLARITY Act
While banking participants were largely quiet after those meetings, calls for changes have reportedly intensified in recent days following the release of the White House Council of Economic Advisers report addressing stablecoin yield.
One source familiar with the compromise cited by Terrett argued that the situation is partly driven by the behavior of trade associations. The source said small banks across the country are not well served when Washington trade groups push for perfect outcomes rather than settling for a deal that limits deposit flight.
Even with pressure rising, Tillis signaled at least some confidence in scheduling. He said there are “some open switches” that may require additional negotiation, but added that he is optimistic a CLARITY Act markup can be scheduled in the coming weeks. Still, the stablecoin yield provisions are not the only outstanding subject.
Alongside the yield dispute, the CLARITY Act also faces unresolved issues related to ethics and provisions involving decentralized finance (DeFi). Those items, according to the reporting, still need to be settled before the legislation can be placed on a floor vote.
Featured image from OpenArt, chart from TradingView.com
