The CLARITY Act faces another delay as lawmakers continue to argue over stablecoin rewards. Senator Thom Tillis said the revised draft language on stablecoin yield is unlikely to be released this week, extending uncertainty around one of the most disputed parts of the bill.
The delay comes as Senate lawmakers wait for clarity on the timing of a banking committee markup, while banks and crypto firms keep pressing opposite views on how the rule should be written.
Senator Thom Tillis said the updated stablecoin yield text will probably not be released this week. He linked the delay to the lack of a confirmed markup date for the CLARITY Act at the Senate Banking Committee. Without a clear committee schedule, lawmakers appear unwilling to publish the draft language for wider review.
According to reports, Tillis said, “We’re probably not going to put out the text this week.” The delay marks another setback for a bill that has already moved more slowly than expected. Legislative teams are still meeting with bank trade groups and crypto companies, showing that talks remain active even though earlier expectations pointed to a release this week.
A report also said the current approach is meant to limit early scrutiny before a markup date is set. FOX Business journalist Eleanor Terrett wrote on X, “The idea, it appears, is to avoid putting the text under too much scrutiny before a markup date is on the calendar, which could create more runway for problems.” Her remark points to a strategy focused on timing as lawmakers try to manage a difficult section of the bill.
The stablecoin yield clause remains the main issue holding back the CLARITY Act. Lawmakers are still trying to decide whether crypto companies should be allowed to offer returns on stablecoin balances, especially when those balances sit idle in user accounts. Banks and crypto firms continue to disagree on where the line should be drawn.
People familiar with the discussions said the draft still follows earlier language. Under the current version, rewards on idle stablecoin balances would be banned, while yield tied to activity such as transactions would still be allowed. One source said the text is largely settled and that making major revisions at this stage would be difficult.
The debate has become more intense because the GENIUS Act already bars stablecoin issuers from paying interest directly to holders, but it does not fully block third-party platforms from offering yield. The CLARITY Act is now trying to deal with that gap. Tillis has been working with Senator Angela Alsobrooks to find a compromise, but no final agreement has been reached.
US banks have argued that allowing stablecoin rewards could pull deposits away from traditional institutions. Their position is that wider access to yield-bearing stablecoin products could weaken bank funding by encouraging customers to move money out of deposit accounts and into crypto-linked products.
Crypto firms have taken the opposite view. Companies such as Coinbase have said a blanket ban on rewards would limit product development and reduce competition. Some firms also argue that banks could take part in the same market instead of being shut out by new rules.
The timing now matters more because the bill has already missed an April 13 to April 20 window for Senate markup, and the May 21 Senate recess is getting closer. If movement slips again, the CLARITY Act could face a longer wait on Capitol Hill. JPMorgan has said it still expects approval this year, although it also warned that a change in political control could reduce the bill’s place on the congressional agenda.
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