Sen. Thom Tillis said Thursday the stablecoin yield draft under the CLARITY Act will not be released this week, according to Politico. The delay stems from uncertainty around the Senate Banking Committee's markup schedule. Lawmakers and industry groups remain divided while negotiations continue behind closed doors.
Timing Uncertainty Drives Postponement
Tillis explained he wants clarity on the markup timeline before publishing the draft text. Notably, he warned that releasing it early could invite scrutiny without a clear legislative path. Per Politico, the text will likely come next week or later. FOX Business journalist Eleanor Terrett offered more context: lawmakers aim to avoid extended criticism before a markup date is set, reducing complications during formal review.
Yield Rule Splits Banks and Crypto Firms
The stablecoin yield clause is the main sticking point. The draft reportedly keeps earlier language banning rewards on idle balances but allows yield tied to transactional activity. This distinction has intensified the divide. Banks argue such rewards could pull deposits away from the financial system. Firms like Coinbase counter that restrictions could limit innovation.
The GENIUS Act already bans issuers from paying interest, but does not restrict third-party platforms from offering yield, a gap the CLARITY Act aims to address. Tillis has worked alongside Sen. Angela Alsobrooks to resolve the issue, but no agreement has emerged despite months of talks. The White House has hosted closed-door meetings since early this year, yet positions remain unchanged on both sides.
Legislative Clock Ticks as May Recess Approaches
The CLARITY Act missed the April 13–20 markup window. Attention now shifts to the May 21 Senate recess. JPMorgan previously expected the bill could pass this year, but noted potential political shifts could influence its progress. Ongoing meetings with bank trade groups and crypto firms signal unresolved disagreements. With the recess looming, further delays could push the bill into the next legislative cycle. Market participants are watching closely.