The window for a May markup of the CLARITY Act is rapidly shrinking. According to Ji Kim, CEO of the Crypto Council for Innovation, the Senate has roughly 13 weeks left on the calendar, but after accounting for scheduled recesses, only 9 to 10 working weeks remain. Lawmakers must also juggle a FISA deadline, a budget resolution, and Department of Homeland Security funding — obligations that leave limited floor time for crypto legislation.
Banking Committee Gridlock Over Stablecoin Yields
The bill has been stuck in the Senate Banking Committee since its markup was delayed in January. Expectations for an April markup have faded. Senator Thom Tillis has urged Chairman Tim Scott to allow more time for negotiations, stressing that stablecoin yield concerns raised by banking groups — including the North Carolina Bankers Association — must be addressed.
Meanwhile, crypto industry pressure is mounting. Over 120 companies, alongside the Blockchain Association and Crypto Council for Innovation, have called for swift action. The North Carolina Blockchain Initiative also urged Tillis to move forward, arguing the bill is essential for maintaining U.S. competitiveness in digital assets.
Democrats Introduce Ethics Clause as New Hurdle
On top of timing issues, Democrats have injected a new obstacle: an ethics provision governing executive use of digital assets. Senator Ruben Gallego stated that no final bill will pass without agreement on this measure. Tillis also backed including ethics language before advancing the bill.
The complication is that the provision falls outside the Banking Committee's jurisdiction, creating uncertainty over how it will integrate into the broader legislation. Senator Adam Schiff noted that ongoing negotiations are narrowing differences, while Senator Cynthia Lummis indicated a May markup remains possible if key issues are resolved.
With barely three months until the August recess and a crowded Senate agenda, the fate of the CLARITY Act hinges on whether Chairman Scott can broker bipartisan consensus on stablecoin rules and the ethics clause in the coming weeks.