The CLARITY Act is facing yet another roadblock as Senator Thom Tillis revealed that he might not release the stablecoin draft this week. He attributed the delay to the uncertain timeline of the crypto Bill’s review by the Senate Banking Committee.
Why Is Sen. Tillis Delaying Stablecoin Yield Draft?
Recently, banks and crypto entities are debating on whether to keep the stablecoin yield clause in the CLARITY Act. Hence, the stablecoin yield text, which was earlier scheduled to come this week, was expected to end the spat.
However, Senator Tillis noted that they might wait for the next week or even beyond to release the draft. He justified his stance by citing that there is no definitive markup for the CLARITY Act on the Senate’s calendar.
“We’re probably not going to put out the text this week,” said Tillis in a Thursday interview, according to a POLITICO report. FOX Business Journalist Eleanor Terrett remarked on the possible reason for this delay.
In a post on X, she wrote, “The idea, it appears, is to avoid putting the text under too much scrutiny before a markup date is on the calendar, which could create more runway for problems.”
CLARITY Act Delay Continues
The CLARITY Act delay is now prolonged as the clause on stablecoin yield serves as the major issue, which is barring it from moving forward. Also, the bill has missed the key April 13-20 deadline as no Senate markup is scheduled during this timeframe.
The timing is crucial as the May 21 Senate recess is approaching. Once it is in effect, it could postpone the the crypto bill’s passage further. Such a delay could push it into an uncertain political environment.
JPMorgan still remains optimistic on the CLARITY Act approval this year. However, it flagged that if Democrats take over the House of Representatives, the bill could lose priority.
