Clarity Act Markup Nears as Tim Scott Sets Senate Session

Senate Banking Committee Chair Tim Scott (R-SC) will open the DC Blockchain Summit on Tuesday with a session expected to address the next Clarity Act markup timeline.

The Digital Asset Market Clarity Act passed the House in July 2025 with a 294-134 vote but has stalled in the Senate Banking Committee since January over stablecoin yield disputes.

Stablecoin Yield Standoff Inches Toward Resolution

Digital Chamber CEO Cody Carbone reportedly told Crypto in America on Friday that negotiations between the crypto industry and banks are nearing a conclusion.

The central dispute centers on whether U.S.-regulated stablecoins can offer rewards or yield through intermediaries. Banks argue that yield-bearing stablecoins could trigger deposit flight.

Crypto firms counter that stripping rewards would push issuers to offshore jurisdictions. Coinbase Chief Policy Officer Faryar Shirzad warned that Hong Kong, Singapore, the UAE, and Bermuda have all built licensing regimes to attract USD stablecoin issuers.

Senators Thom Tillis (R-NC) and Angela Alsobrooks (D-MD) are working on compromise language that would ban passive yields while preserving transaction-based rewards.

Ticking Clock for 2026

The White House set a March 1 deadline for a deal. That date passed without resolution. Polymarket odds for passage have dropped from a peak of 82% to roughly 60%.

Senate Majority Leader John Thune has signaled that there will be no floor action before April 2026.

If the bill fails to clear the committee by late April, analysts warn that passage odds drop to near zero for this congressional session, potentially triggering crypto market volatility and stalling institutional inflows.