Senator Tillis Pushes Clarity Act Forward: Stablecoin Yield Fight Nears Markup

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Senator pushes Clarity Act forward as stablecoin yield fight nears markup

Senator Thom Tillis is attempting to bring the CLARITY Act up for review in the Senate Banking Committee. This move would address the ongoing debate over stablecoins and also help advance protections for crypto developers who don’t hold users’ assets, as proposed by Senator Cynthia Lummis.

Summary

  • Senator Thom Tillis wants the Clarity Act moved into Senate Banking’s markup stage after the May recess.
  • Tillis says there is “significant consensus” on the bill and promises to release stablecoin yield text 4–5 days before a hearing.
  • He also backs Senator Cynthia Lummis’ framework on limiting the use of 1960-era criminal laws against software developers.

Senator Thom Tillis is working to get the CLARITY Act officially reviewed by the Senate Banking Committee, which will likely lead to a major debate about how stablecoins and cryptocurrency developers should be regulated. According to crypto journalist Eleanor Terrett, Tillis intends to move the bill to the committee’s markup stage quickly, and believes there’s growing agreement among lawmakers about how to proceed.

As an analyst following this closely, I understand Senator Tillis intends to request a hearing on stablecoin yield legislation shortly after the congressional recess. He’s committed to releasing the updated bill text four to five days beforehand, giving industry stakeholders time to review it. He believes most of the banking sector’s concerns about stablecoin yield risks have been resolved through recent discussions, and is encouraging any remaining objectors to engage constructively to help refine the legislation.

These statements come after weeks of private discussions where banks and cryptocurrency companies disagreed about whether stablecoins should be limited in how much interest they can pay. This disagreement has already caused a delay in moving forward with the proposal. As FinTechWeekly reported, a previous draft of a compromise suggested that digital asset companies wouldn’t be allowed to offer interest on stablecoin holdings – either directly or through other means – that compares to traditional bank interest rates. However, it would still allow limited rewards based on how people use the stablecoins or the platform they’re on.

Lummis framework and developer protections

Senator Tillis recently stated he broadly agrees with a proposed plan from Senator Cynthia Lummis regarding cryptocurrency regulation. This includes concerns about how existing laws from 1960 could be applied to software developers and how law enforcement handles crypto-related cases. Specifically, Lummis has cautioned that a wide interpretation of a federal law about money transmission (18 U.S.C. § 1960) could potentially make it illegal for Americans to offer certain cryptocurrency software services, as outlined in a letter from her office earlier this year.

Senator Lummis and others are advocating for legal safeguards for developers who work on open-source blockchain software but don’t handle users’ money. They believe these developers shouldn’t be considered the same as companies that move money, and shouldn’t face the same regulations. Currently, law enforcement is focusing on those who actually operate financial services. A plan suggested in February, as reported by Cryptopolitan, would make this distinction official, meaning only those directly controlling customer funds would need licenses and could face criminal charges.

Senator Tillis’s recent statements suggest that U.S. cryptocurrency laws are progressing, focusing on two key areas: determining which stablecoin rewards are allowed and clarifying the legal distinction between those who create crypto protocols and the companies that handle financial transactions. Experts previously noted that uncertainty around U.S. rules for crypto yields and custody was hindering product development. Clearer regulations, they said, could encourage greater investment in cryptocurrencies like Bitcoin from traditional financial institutions.

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2026-04-29 21:46