Senator Thom Tillis, a key member of the Senate Banking Committee, has signaled his readiness to vote to advance the CLARITY Act out of the committee. The senator said he will push for the crypto bill’s markup once they return from their May recess, as they have largely addressed banks’ concerns over the stablecoin yield text in the bill.
Senator Tillis To Push For CLARITY Act Markup Amid May Expectations
According to crypto journalist Eleanor Terrett, Senator Tillis said he is ready to advance the CLARITY Act to markup. The senator said that he will ask the Senate Banking Committee Chair, Tim Scott, to move forward with scheduling a markup when they return from their May recess.
“I think we’ve made a lot of progress, and it’s time to get it before the committee to move it forward,” Tillis said. This is significant as Senator Scott had previously cited getting full Republican support as a hurdle before they could mark up the crypto bill.
Tillis appeared to be one of the holdouts on the committee before now, as he sought to address concerns about stablecoin rewards, with the banking industry claiming that stablecoin yields could trigger deposit outflows. However, the senator revealed that they have heard and addressed most of the banks’ concerns about stablecoin yield.
He said that other stakeholders are welcome to “come and work in good faith.” The senator also mentioned that he hopes to release the stablecoin yield text four to five days before the CLARITY Act, just after stakeholders get a preview of the text.
With Tillis’ vote, the Senate Banking Committee should be able to advance the CLARITY Act along party lines even if all Democrats on the committee vote against the crypto bill. The CLARITY Act is currently facing an August deadline, when the Senate will head for a five-week recess ahead of the midterm elections.
Tillis Also Comments On Law Enforcement Concerns
Senator Tillis also commented on law enforcement concerns regarding the provision on DeFi and developer protections. The senator pointed to Senator Cynthia Lummis’ approach, stating that he is generally supportive of where the crypto bill stands.
As CoinGape reported, law enforcement groups have raised concerns over the provision in the CLARITY Act, which mirrors the Blockchain Regulatory Certainty Act. This provision seeks to protect crypto software developers from liability over illicit activity carried out by users on the decentralized platforms they create. However, these groups argue that the provision may make it harder to crack down on illicit finance.
Politico earlier reported that Senator Tillis said these concerns need to be addressed, signaling they could be a hurdle ahead of any potential markup of the crypto bill. However, Senator Lummis assured yesterday that it is not a big hurdle and that she was already working to resolve it. The senator also mentioned at the Bitcoin conference earlier this week that the bill’s markup will be held next month.
Meanwhile, Terrett revealed that efforts are ramping up to address the remaining issues following Tillis’ comments and a sense of renewed optimism that the CLARITY Act markup could happen soon. These issues include Democrats’ demand for an ethics provision in the crypto bill.
Citing sources familiar with the negotiation process, the journalist stated that the Senate is likely to add the ethics provision after the crypto bill reaches the Senate floor. Ethics is outside the Senate Banking Committee’s jurisdiction, so the crypto bill’s markup could proceed without this provision.