A key Republican senator is pushing for a vote on a landmark crypto bill, but major disputes over stablecoin yield, developer liability, and ethics rules could still derail the legislation.
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Senator Tillis Pushes for May Vote on Crypto Act With 3 Hurdles Remaining
(P1) Senator Thom Tillis is calling for the Senate Banking Committee to schedule a vote on the long-delayed Clarity Act when lawmakers return in mid-May, a move that could finally establish a regulatory framework for digital assets in the United States.
(P2) “I’m going to ask the chair to move forward with scheduling a markup when we get back,” Tillis, a Republican from North Carolina, told reporters Wednesday. “I think we’ve made a lot of progress, and it’s time to get it before the committee to move it forward.”
(P3) The push follows months of delays, including a postponed January markup after crypto exchange Coinbase pulled its support over a dispute on stablecoin yields. While Tillis stated they have “addressed most of the banks’ concerns” on the yield topic, other sticking points include ethics rules for politicians’ crypto ventures and liability protections for software developers, which have drawn concern from law enforcement groups.
(P4) The bill’s passage is seen as a major potential catalyst, with White House adviser Patrick Witt suggesting crypto will “take off like a rocket ship” if it becomes law. However, with the November midterms approaching, the window for passage is closing, and everything hinges on Senate Banking Committee Chair Tim Scott scheduling the markup. Polymarket traders currently give the bill just a 48% chance of passing in 2026, down from 64% two weeks ago.
The Forcing Mechanism
Tillis’s call for a vote is a strategic move to break the legislative stalemate that has kept the Clarity Act in committee since it passed the House in July 2025. The bill aims to define which crypto assets are securities and which are commodities, providing the legal clarity the industry has sought for years.
“Until you have a forcing mechanism of a markup, everybody that really doesn’t want it done [is] going to have one more thing that they want to talk about,” Tillis said, framing the vote as a necessary step to force a resolution on the bill's most contentious points. Senator Cynthia Lummis, a key crypto proponent, echoed this sentiment, stating at a recent conference, “We are going to mark up the Clarity Act in May. We are going to get it to the finish line.”
Three Unresolved Fights
Despite the renewed optimism, at least three major issues remain unresolved, any of which could prevent the bill from advancing.
First is the conflict over stablecoin yields, which pits the banking lobby against the crypto industry and the White House. Banks argue that allowing high-yield rewards on stablecoins could trigger deposit outflows from traditional financial institutions. While Tillis claims progress, a public spat just yesterday between a banking trade group and White House adviser Patrick Witt shows the issue remains fraught.
Second are protections for software developers. A provision mirroring the Blockchain Regulatory Certainty Act, which shields developers from liability for illicit activity on their platforms, has drawn opposition from law enforcement groups and national security-focused senators in both parties. Tillis has stated these concerns "need to be addressed."
Finally, Democrats are demanding ethics provisions, partly in response to former President Donald Trump’s numerous crypto ventures. Tillis has insisted he would walk away from the bill without sufficient ethics language, though a spokesman suggested it could be added after the committee markup but "before a final floor vote."
The Market Outlook
The market is watching the bill’s progress closely. The GENIUS Act, a stablecoin bill passed last summer, preceded a market rally where Bitcoin hit $123,000. Some analysts, like Standard Chartered, have an $8 price target for XRP if the Clarity Act passes.
However, others warn of a potential "sell-the-news" event, similar to the 16% Bitcoin price drop that followed the approval of spot Bitcoin ETFs in January 2024. For now, the fate of the bill, and the "rocket ship" rally promised by the White House, rests on Chair Tim Scott’s willingness to schedule the vote before the Memorial Day recess.
This article is for informational purposes only and does not constitute investment advice.
[1] Key Senator Pushes for Vote on Clarity Act—But Hurdles Remain[2] Sen. Tillis Pushes for CLARITY Act Markup as Stablecoin Yield Concerns Largely Addressed[3] Clarity Act to get fast-tracked, says Senator Thom Tillis – calls for 'good faith' on stablecoin yield[4] White House Says Crypto Will “Take Off Like a Rocket Ship” Once CLARITY Act Passes: Is It Buy the Rumor, Sell the News?
