According to Punchbowl News, Thom Tillis has urged Senate Banking Committee Chairman Tim Scott to postpone the marking process for the Cryptocurrency Market Structure Act until May, as bank and crypto industry representatives need more time to resolve disagreements regarding stablecoin yield terms.
Thom Tillis, a Republican from North Carolina, told reporters on Monday that he expects the Senate Banking Committee not to flag the bill (also known as the CLARITY bill) in April and has advised Scott to schedule it for next month, according to Punchbowl News.
Tillis has been leading the discussion among cryptocurrency and banking members. He reportedly told Scott, "For me, it's very important not to rush things, but to listen to everyone and provide a reasonable basis for what we accept."
The continued delays have raised concerns that the CLARITY bill may not pass before the November midterm elections. U.S. Treasury Secretary Scott Bessent stated that the situation could reverse the bill's momentum.
Bessent stated in March, "I think if the Democrats gain control of the House, although that's not my best-case scenario, then the prospect of a deal will be completely shattered."
Crypto groups say the Clarity Act cannot be delayed any longer.
On the same day, the crypto advocacy group The Digital Chamber sent a letter to the Senate Banking Committee, urging it to expedite the passage of legislation on the crypto market structure to the Senate's flagging process, "as soon as the schedule allows."
The banking sector is concerned that allowing stablecoin yields could lead to a massive outflow of deposits from the traditional banking system, particularly community banks.
They argue that these banks lack the balance sheet flexibility to absorb such outflows unless they rely on more expensive wholesale financing.
Meanwhile, Coinbase CEO Brian Armstrong and others are pushing for terms that are more favorable to stablecoins.
Last month, it was reported that banks and cryptocurrency industry members were close to reaching an agreement on enabling stablecoin rewards to be distributed on third-party crypto platforms associated with crypto trading activity, excluding passive balances without transactions.
The Digital Chamber points out that more than 270 days have passed since the House of Representatives passed the CLARITY bill with bipartisan support.
“Clarity can no longer wait,” said Taylor Barr, director of government affairs at The Digital Chamber, adding, “More than 70 million Americans have embraced digital assets, and they deserve the regulatory clarity they’ve been waiting for.”
Other members of the crypto industry believe that pushing the bill forward is more important than waiting for perfect terms.
