Tillis Holds Off on Stablecoin Yield Draft as Senate Talks Stall

Sen. Thom Tillis said Thursday that a draft on stablecoin yield provisions under the CLARITY Act will not be released this week, Politico reported, as Senate negotiations continue and lawmakers remain split over how rewards linked to stablecoin activity should be treated. Tillis, a key sponsor working with Sen. Angela Alsobrooks, said he wants clarity on when the Senate Banking Committee will hold its markup before circulating text publicly. He cautioned that putting out language without a defined legislative runway could draw scrutiny and complicate the process. The draft is now expected next week or later. FOX Business journalist Eleanor Terrett added that lawmakers are trying to avoid a prolonged public backlash before a markup date is set, a strategy aimed at smoothing the bill's formal review. Tillis' team continues to meet with bank trade groups and crypto firms, signaling that core issues are still unresolved. The central dispute remains the stablecoin yield clause. The draft is reported to preserve earlier language that would bar rewards on idle balances, while permitting yield tied to transactional activity. Banks argue that allowing such incentives could siphon deposits from the traditional financial system. Crypto firms, including Coinbase, say tighter limits would curb innovation. The debate is sharpened by overlap with the GENIUS Act, which already prohibits issuers from paying interest but does not stop third-party platforms from offering yield. That distinction has become a focal point inside the CLARITY Act talks. The delay adds pressure to the legislative calendar. The bill failed to hit a targeted April 13–20 markup window, and attention is turning to the May 21 Senate recess. Despite months of discussions, no compromise has emerged. The White House has hosted closed-door meetings since early this year to push talks forward, but positions on both sides have held. JPMorgan has previously said it expects the bill could pass this year, while warning that shifting political dynamics could still affect its path.