After months of delay, the Senate appears to be approaching a decisive moment for the long-awaited CLARITY Act. This week could finally help determine whether lawmakers can move the bill forward—or whether additional negotiating pressure will push momentum into mid-May.
Banks Pressure Banking Committee MembersPressure from the traditional banking sector that wants to weigh in on the stablecoin yield—paired with Sen. Thom Tillis’ stated interest in hearing those concerns—could mean the markup is postponed to the second week of May, when the Senate returns from recess.
Terrett previously reported that Tillis’ office has been facing a targeted pressure campaign from banking groups, including the North Carolina Bankers Association.
The push does not appear to be limited to Tillis. Industry groups have also been reaching out to other members of the Banking Committee beyond Tillis and Angela Alsobrooks, who are described as the lead negotiators.
What’s Still Unsettled In The CLARITY ActOne source familiar with the compromise cited by Terrett argued that the situation is partly driven by the behavior of trade associations. The source said small banks across the country are not well served when Washington trade groups push for perfect outcomes rather than settling for a deal that limits deposit flight.
Even with pressure rising, Tillis signaled at least some confidence in scheduling. He said there are “some open switches” that may require additional negotiation, but added that he is optimistic a CLARITY Act markup can be scheduled in the coming weeks. Still, the stablecoin yield provisions are not the only outstanding subject.
Featured image from OpenArt, chart from TradingView.com
