The legislation has been slowed by continued resistance from Senate Democrats and the banking industry, both of which have raised objections to key provisions, particularly those related to stablecoin rewards.
Banking Committee Markup Hinges On TillisTerrett reported that Senator Thom Tillis of North Carolina appears to be central to resolving the ongoing dispute over stablecoin yield and reward programs.
US-based cryptocurrency exchange Coinbase later cited those proposed changes as one of several reasons it withdrew its support for the legislation at the time, underscoring how sensitive the yield issue has become for the industry.
Late-March CLARITY Act MarkupTerrett notes that a dramatic breakthrough between banks and crypto firms may be unlikely. Instead of a comprehensive resolution that fully satisfies both sides, the strategy now appears to focus on drafting language that represents the minimum each party can accept.
Even if Democrats ultimately oppose the bill during the next markup session, the CLARITY Act could theoretically pass out of committee along party lines. In that scenario, however, Tillis’ support would be pivotal if no Democrats cross the aisle. His position could determine whether the legislation advances or remains stuck.
One DeFi executive engaged in the talks suggested that Senate Democrats are now scrambling to revisit those outstanding matters. Ethics provisions are also expected to remain a point of sensitivity for some Democratic members, adding another layer of complexity to an already delicate negotiation surrounding the CLARITY Act.
Still, there is cautious optimism that meaningful progress on stablecoin yield and related provisions could be achieved within the next three weeks. If that happens, lawmakers may be able to reschedule the markup for late March.
Featured image from OpenArt, chart from TradingView.com
