US Senator Thom Tillis announced Wednesday he will request the Senate Banking Committee schedule a markup vote on the CLARITY Act, a stalled crypto market structure bill that has languished since January over disputes on stablecoin yields, developer liability, and ethics provisions. The Republican senator told reporters the legislative text has matured enough to advance, signaling renewed momentum on one of Congress’s most significant crypto regulatory efforts since the House passed its version in July.
How Coinbase Lobbying Blocked Senate Progress
The CLARITY Act establishes regulatory oversight roles for two US financial regulators and creates a foundational framework for crypto market structure. The House passed its version in July, but Senate negotiations stalled in January after Coinbase withdrew support over a provision banning stablecoin yield payments. Banking lobbyists have argued the yield ban closes a loophole in the existing GENIUS Act. Beyond stablecoin terms, disagreement persists over how broadly software developer liability protections should extend, particularly regarding exposure to illegal activity. Tillis signaled he has negotiated with banking interests and believes their core concerns have been addressed, though he did not specify which provisions changed.
Ethics Demands Create New Leverage Point
A new obstacle emerged this week: Senate Democrats are demanding ethics language be included before the bill leaves committee. Tillis backed this demand Monday, stating publicly that ethics provisions must be in the final text or he will vote against the bill he has been negotiating. The specific language of proposed ethics rules has not been disclosed. Tillis told reporters he has made progress on software developer protections and remains generally supportive of that scope, though details remain unconfirmed. The committee chairman, Tim Scott, has not publicly committed to scheduling a markup.
May 11 Markup Push Tests Committee Alignment
Tillis plans to formally request a markup schedule when the Senate returns May 11, hoping for a minimum four-day advance notice before committee action. This forcing mechanism reflects frustration that without a hard deadline, stakeholders opposed to the bill will continue raising objections. The move signals Tillis believes the text is ready, but success depends on Tim Scott’s willingness to schedule and broader committee support to advance it. Stablecoin yield provisions, developer liability scope, and ethics language all remain negotiation points with no confirmed resolution across all parties.
