- Tillis delays stablecoin yield draft release, awaiting clarity on markup timing amid ongoing Senate negotiations.
- Dispute over yield rules divides banks and crypto firms, focusing on rewards tied to stablecoin activity.
- Delay pressures timeline as lawmakers race toward May recess without agreement on key provisions.
Sen. Thom Tillis said Thursday the stablecoin yield draft under the CLARITY Act will not be released this week, according to Politico. The delay stems from uncertainty around the Senate Banking Committee’s markup schedule. Lawmakers and industry groups remain divided, while negotiations continue behind closed doors in Washington.
Why Tillis is Holding Back the Draft
Tillis explained that he wants clarity on the markup timeline before publishing the draft text. Notably, he warned that releasing it early could invite scrutiny without a clear legislative path. According to Politico, he confirmed the text will likely come next week or later.
However, FOX Business journalist Eleanor Terrett offered more context on the delay. She noted that lawmakers aim to avoid extended criticism before a markup date is set. That approach, she said, could reduce complications during formal review.
Meanwhile, discussions are still ongoing with the legislative team and continues meetings with bank trade groups and crypto firms. That engagement signals unresolved disagreements on key provisions.
Stablecoin Yield Clause Remains Central Issue
The stablecoin yield clause is the main issue in the negotiations. The draft reportedly keeps earlier language banning rewards on idle balances. However, it allows yield tied to transactional activity.
This distinction has intensified the divide between traditional banks and crypto companies. Banks argue such rewards could pull deposits away from the financial system. In contrast, firms like Coinbase maintain that restrictions could limit innovation.
Importantly, the GENIUS Act already bans issuers from paying interest. However, it does not restrict third-party platforms from offering yield. That gap has fueled the current dispute within the CLARITY Act framework.
Timeline Pressure Builds
The delay also affects the broader legislative timeline. The CLARITY Act missed the April 13–20 window without a scheduled markup. As a result, attention now shifts toward the approaching May 21 Senate recess.
Tillis has worked alongside Sen. Angela Alsobrooks to resolve the issue. However, no agreement has emerged despite months of discussions. Since early this year, the White House has hosted closed-door meetings to push negotiations forward.
Still, positions remain unchanged on both sides. JPMorgan expects the bill could pass this year, according to earlier reporting. However, it noted potential political shifts could influence its progress.
