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US senator urges delay of CLARITY Act Senate markup until May: Report
TL;DR
A US senator has urged a delay in the markup of the CLARITY Act until May to allow more time for discussions on stablecoin yield provisions. Concerns are rising that continued delays may prevent the bill from passing before the midterms in November.
Key points
- US senator urges delay of CLARITY Act markup until May
- Disagreements over stablecoin yield provisions need resolution
- Concerns about passing the bill before US midterms in November
Mentioned in this story
Thom TillisSenate Banking Committee
CLARITY Actstablecoin
A US senator has reportedly urged Senate Banking Chair Tim Scott to delay the markup for the crypto market structure bill until May, as banking and crypto representatives need more time to resolve disagreements over stablecoin yield provisions.
US Republican Thom Tillis of North Carolina told reporters Monday that he does not expect the Senate Banking Committee to mark up the legislation, also known as the CLARITY Act, in April and has recommended that Scott schedule it for next month, according to Punchbowl News.
Tillis, who has been leading discussions between crypto and banking members, reportedly told Scott: “It’s very important to me not to accelerate things, to hear everybody, and give them a rational basis for what we do accept.”
Continued delays have sparked concern that the CLARITY Act may not pass before the US midterms in November, an event that US Treasury Secretary Scott Bessent said could reverse momentum of the bill.
Source: Brendan Pedersen
“I think if the Democrats were to take the House, which is far from my best case, then the prospects of getting a deal done will just fall apart,” Bessent said in March.
CLARITY Act cannot wait any longer, crypto group says
It comes the same day crypto advocacy group The Digital Chamber sent a letter to the Senate Banking Committee asking it to move the crypto market structure legislation forward to a Senate markup “as soon as the calendar allows.”
Related: Bessent ramps up pressure on Congress to pass CLARITY Act
The banking industry has raised concerns that allowing stablecoin yield could trigger significant deposit outflows from the traditional banking system, particularly at community banks.
Q&A
Why is the markup of the CLARITY Act being delayed?
The markup is being delayed to give banking and crypto representatives more time to resolve disagreements over stablecoin yield provisions.
Who is urging the delay of the CLARITY Act markup?
US Senator Thom Tillis of North Carolina is urging the delay, recommending that the markup be scheduled for May.
What could happen if the CLARITY Act is not passed before the midterms?
If the CLARITY Act is not passed before the midterms, it may lose momentum and face increased challenges in future discussions.
