Tillis Seeks Stablecoin Yield Delay in CLARITY Act Markup

U.S. Senator Thom Tillis of North Carolina is pushing to postpone the markup of the CLARITY Act in the Senate Banking Committee until May due to ongoing disagreements between the crypto and banking industries over stablecoin yield provisions.

The central dispute revolves around whether stablecoins should be allowed to offer yields to holders, with the banking industry arguing that this could trigger significant deposit outflows that smaller institutions would struggle to absorb without resorting to higher-cost wholesale funding.

Coinbase CEO Brian Armstrong and other crypto industry representatives have been pushing for more favorable stablecoin provisions in the bill. Members of both industries were reportedly close last month to a compromise that would allow stablecoin rewards tied to activity on third-party crypto platforms, but not for passive balances.

The Digital Chamber, a crypto advocacy group, sent a letter to the Senate Banking Committee urging the panel to advance the legislation 'as soon as the calendar allows.' The group noted that more than 270 days have passed since the House passed the CLARITY Act with bipartisan support.