Stablecoin Yield Clause Delayed Again, Pushing CLARITY Act Further Into Uncertainty

The CLARITY Act's passage is now in doubt as Senator Thom Tillis has delayed the release of the stablecoin yield draft, which was expected to resolve the bill’s most contentious issue. The clause, which governs how stablecoins generate returns, remains unresolved and is preventing the broader legislation from moving forward.

Tillis cited the lack of a scheduled Senate Banking Committee markup as the reason for the delay, stating the text will likely not be released this week. The absence of a markup timeline has created uncertainty about when the bill will be formally debated or revised.

With no markup scheduled before the May 21 Senate recess, the CLARITY Act faces a critical juncture. A delay past that date could push the bill into the next legislative session, where its fate will depend on the outcome of the November elections. JPMorgan, which has expressed optimism about the bill’s eventual passage, noted that if Democrats gain control of the House, the CLARITY Act could lose its legislative priority.

The stablecoin yield clause remains the focal point of the dispute between banks and crypto firms. Its unresolved status has already caused the bill to miss its previously stated deadline for review and is now threatening its timeline entirely.