Senate's Key Clarity Act Holdout Says Bill Is Ready for Markup Hearing, Opening Path to May Vote

Key Takeaways Senator Thom Tillis said the Digital Asset Market Clarity Act has "addressed a lot of the concerns" of banking lobbyists over stablecoin yield and urged the Senate Banking Committee chair to schedule a markup hearingA mid-May markup hearing is now possible, but any further delay could be fatal to the bill's 2026 chances given approximately 11 weeks remaining in the Senate calendarRemaining hurdles include a Democrat-pushed ethics provision banning government officials from personal crypto business interests and a potential jurisdictional claim from Senate Judiciary Committee Chairman Chuck Grassley over DeFi provisionsDigital Chamber CEO Cody Carbone called the development the strongest momentum yet for a May markup, saying the industry hopes the bill "will move imminently"The Senate bill must then pass the full Senate before going to the House, which passed its own version of the Clarity Act last year Senator Thom Tillis, the Republican lawmaker whose request for more banking industry negotiating time had put the Digital Asset Market Clarity Act in its latest holding pattern, told reporters Wednesday that the bill is ready to advance -- a statement that reopens the possibility of a mid-May Senate Banking Committee markup hearing and revives hope for crypto's top legislative priority in Washington. "I'm going to encourage the chair to move forward with the markup," Tillis said, according to a Fox Business transcript of his remarks. The senator added that the legislative work had "addressed a lot of the concerns" raised by banking lobbyists who argued that stablecoin yield features in the bill threatened the turf of interest-bearing bank deposits. Stablecoin Yield Standoff Appears to Be Resolving The stablecoin rewards provision has been one of the most contentious sticking points in the Clarity Act's Senate journey, with banking industry lobbyists pressing for more time to negotiate terms they feared could erode their deposit base. Tillis had previously granted that request, drawing frustration from crypto advocates and from President Trump himself, who said over the weekend he would not let bankers "ruin" the Clarity Act. With Tillis now signaling the banking industry has had sufficient time to make its case, the path to a markup hearing has reopened. Tillis said he intends to give all stakeholders a chance to review compromise text on stablecoin yield in the days before any hearing, and left the door open for continued good-faith engagement. "There may be a few more that we can get there, if they want to come and work in good faith," he said. Mid-May Is the Target -- and Potentially the Last Window A markup hearing at the Senate Banking Committee is a necessary prerequisite before the full Senate can vote on the legislation. If a hearing is scheduled for mid-May, it would leave enough runway -- approximately 11 weeks remain in the Senate calendar before lawmakers disperse for midterm election demands -- to advance the bill to a floor vote and then to the House of Representatives. Any additional delay beyond mid-May risks being fatal to the 2026 Clarity Act. The Senate's remaining schedule has little flexibility, and a bill that misses the window would likely need to be reintroduced in the next Congress. Cody Carbone, CEO of the Digital Chamber, described the current moment as the strongest momentum yet. "There is more momentum than ever for a markup in May," Carbone said. "We support getting this bill on the committee calendar as soon as possible, and we are hopeful it will move imminently." Remaining Hurdles Could Still Complicate Passage Despite the positive signals, significant obstacles remain. A Democrat-backed provision seeking to ban government officials from holding personal business interests in crypto -- widely seen as targeting President Trump and his family given their extensive crypto holdings and memecoin ventures -- remains unresolved. Tillis has reportedly indicated he supports including such an ethics requirement, though the issue falls outside the Banking Committee's jurisdiction and would be handled separately. More immediately problematic for the bill's timeline is Senate Judiciary Committee Chairman Chuck Grassley's push to route certain provisions -- specifically legal protections for decentralized finance developers -- through his committee before the bill advances. Any additional committee referral would consume scarce calendar time and add procedural complexity to an already tight legislative window. House Passage Would Follow Should the Senate advance and pass the Clarity Act, the legislation would move to the House of Representatives, which passed its own version of the bill last year. Crypto advocates are broadly counting on the House to approve the Senate's final product, though the House has recently struggled to maintain alignment with Senate legislative efforts -- a dynamic that could introduce further friction at the final stage.