What they're not telling you: Authored by Brayden Lindrea via CoinTelegraph.com, A US senator has reportedly urged Senate Banking Chair Tim Scott to delay the markup for the crypto market structure bill until May, as banking and crypto representatives need more time to resolve disagreements over stablecoin yield provisions. US Republican Thom Tillis of North Carolina told reporters Monday that he does not expect the Senate Banking Committee to mark up the legislation, also known as the CLARITY Act, in April and has recommended that Scott schedule it for next month, according to Punchbowl News. Tillis, who has been leading discussions between crypto and banking members, reportedly told Scott: “It’s very important to me not to accelerate things, to hear everybody, and give them a rational basis for what we do accept.” Continued delays have sparked concern that the CLARITY Act may not pass before the US midterms in November, an event that US Treasury Secretary Scott Bessent said could reverse momentum of the bill.
# THE TAKE: The CLARITY Act Delay Is About Power, Not Prudence A Senate delay on crypto regulation isn't cautious governance—it's tactical capitulation. Someone's buying time, and it isn't retail investors. The CLARITY Act sits at the intersection of genuine regulatory need and regulatory capture. Crypto markets are bleeding retail money into sophisticated hands while Washington theater plays out. A May delay doesn't clarify anything; it extends the Wild West. The real story? Banking Chair Tim Scott faces pressure from both crypto evangelists AND traditional finance dinosaurs protecting turf. Neither wants genuine clarity—they want advantage. Crypto advocates need runway for market consolidation. Legacy banks need leverage in the final rule language. Meanwhile, regulatory arbitrage persists. Stablecoins operate unmonitored. DeFi protocols siphon capital. Retail gets fleeced. This isn't prudent deliberation. It's choreographed dysfunction where delay *is* the policy.
What the Documents Show
“I think if the Democrats were to take the House, which is far from my best case, then the prospects of getting a deal done will just fall apart,” Bessent said in March. It comes the same day crypto advocacy group The Digital Chamber sent a letter to the Senate Banking Committee asking it to move the crypto market structure legislation forward to a Senate markup “as soon as the calendar allows.” The banking industry has raised concerns that allowing stablecoin yield could trigger significant deposit outflows from the traditional banking system, particularly at community banks. It argues that those banks may not have enough balance-sheet flexibility to absorb such outflows without relying on higher-cost wholesale funding. Meanwhile, Coinbase CEO Brian Armstrong and others have pushed for more favorable stablecoin provisions. Last month, members of the banking and crypto industries were reportedly close to agreeing on enabling stablecoin rewards tied to crypto activity on third-party crypto platforms, but not for passive balances.
Follow the Money
The Digital Chamber noted that it has now been more than 270 days since the House passed the CLARITY Act with bipartisan support. “Clarity cannot wait,” The Digital Chamber’s government affairs director, Taylor Barr, said, adding: “More than 70 million Americans who have embraced digital assets deserve the regulatory clarity they have waited far too long for.” Other members of the crypto industry have argued that moving the bill forward is more important than holding out for perfect terms. Make sure to read our "How To [Read/Tip Off] Zero Hedge Without Attracting The Interest Of [Human Resources/The Treasury/Black Helicopters]" Guide It would be very wise of you to study our privacy policy and our (non)policy on conflicts / full disclosure . Here's our Cookie Policy .
Primary Sources
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- Category: Global Power
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