TLDR
- Sen. Thom Tillis said the Senate Banking Committee is unlikely to mark up the Clarity Act in April.
- The first possible Senate window for a markup is the week of May 11 after recess.
- Sen. Cynthia Lummis said more delay is unacceptable and urged the committee to act.
- Kevin Warsh told senators he would not move the Fed to issue a CBDC if confirmed.
- A Digital Chamber letter said more than 270 days have passed since the House cleared the Clarity Act.
The Senate Banking Committee appears set to miss the April window for a Clarity Act markup. A key Republican now expects the panel to move in May instead. That shift has exposed a split among senators as crypto firms and trade groups press for faster action.
Tillis pushes for more time before committee action
Sen. Thom Tillis said on Tuesday that he does not expect a markup in April. He said the committee should look to May instead. Because the Senate will be in recess, the week of May 11 is the first possible opening.
The committee would have needed to notify members by Friday for a markup next week. That has not happened. As a result, the timeline long expected by the crypto industry now looks out of reach.
Tillis said he wants more time before the committee moves forward. He told reporters, “It’s very important to me not to accelerate things, to hear everybody, and give them a rational basis for what we do accept.”
His office has also faced pressure from bank lobbying groups. That includes the North Carolina Bankers Association. Banks remain unhappy with parts of a stablecoin yield compromise, although the text has not been released publicly.
Lummis and industry groups press for faster movement
Not every Republican on the committee supports waiting until May. Sen. Cynthia Lummis said the panel should not keep delaying the bill. She warned that more waiting could hurt progress already made.
Lummis told Crypto In America, “Further delay is unacceptable.” She also said, “I’m really proud of the bipartisan progress we’ve made.” She added that lawmakers should not sacrifice progress while seeking a perfect bill.
The crypto industry has also grown restless. The sector had earlier expected a market structure markup last September. That schedule slipped, and frustration has built as the legislative window gets shorter.
On Monday, The Digital Chamber sent a letter to the committee leadership. The group urged senators to move to a markup as soon as possible. The letter said more than 270 days have passed since the House approved the Clarity Act.
Warsh shifts on CBDCs as Fed hearing closes
Kevin Warsh also drew attention during his Senate Banking Committee hearing on Tuesday. In 2022, he supported a U.S. central bank digital currency in an opinion piece. At that time, he argued for a wholesale version used by banks and institutions.
During the hearing, Warsh took a different position. He told Sen. Bernie Moreno that he would not move the Federal Reserve to issue a CBDC if confirmed. He said the Fed lacks the authority and called a CBDC a “bad policy choice.”
Warsh also told Sen. Cynthia Lummis that digital assets are already “part of the fabric” of U.S. financial services. That statement may ease some concerns among crypto supporters. Still, Democrats raised questions about his financial disclosures and broader investment portfolio.
Warsh faced few questions about his investments in blockchain and crypto companies. If confirmed as Fed chair, he would need to divest most holdings within 90 days. His hearing has now ended, and focus is shifting back to the Clarity Act timetable.
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