CLARITY Act Timeline Slips Again as Yield Dispute Remains Unresolved

The latest update on the CLARITY Act reveals further delays in the release of revised legislative text, as lawmakers continue to negotiate the bill’s most contentious issue: how stablecoins can offer yield. The setback comes after the proposal disappeared from the Senate Banking Committee’s April 14–20 markup schedule. This highlights growing uncertainty around both policy details and legislative timing.

Draft Delay Linked to Unresolved Yield Rules

At the center of the delay is the ongoing dispute over stablecoin yield rules. Lawmakers have been working toward a compromise. It would prohibit passive interest on idle balances while potentially allowing certain activity-based rewards. However, the exact scope of those allowances still remains unclear.

This lack of agreement prevented the release of updated draft text that had been expected in mid-April. Until revised language is finalized and agreed, the bill cannot advance to the committee markup stage. The next procedural step depends on resolving this issue.

The debate reflects a broader structural question about how stablecoins function. Allowing yield could make them more competitive with bank deposits. It also raises concerns about financial stability and regulatory oversight.

>>> Related: CLARITY Act Stablecoin Yield Debate Spurs Senate Compromise

Senate Markup Timeline Now Uncertain

The legislative delay is closely tied to uncertainty around the Senate Banking Committee’s schedule. The bill was removed from the April markup window. As of now, committee chair Tim Scott has not formally announced a new date.

While some lawmakers had previously pointed to late April or early May as a possible timeframe for committee action, that expectation now appears contingent on resolving the remaining policy disagreements. Thom Tillis has acknowledged the delay, citing uncertainty around markup timing.

The timeline now depends on when lawmakers resolve the remaining issues. That uncertainty continues to shape the broader crypto regulation timeline in the U.S.

White House Analysis Shapes Debate

The White House has not formally taken a public position on the overall legislation. However, analysis from the White House Council of Economic Advisers has influenced the ongoing debate. The council has argued that a full ban on stablecoin yield may provide limited economic benefit. It could also increase costs for consumers.

This analysis adds pressure against a full yield ban. At the same time, it does not amount to a formal endorsement of any specific legislative outcome.

The current CLARITY Act update therefore reflects not only legislative timing issues, but also an active policy debate informed by competing economic assessments.

Industry Divide Shapes Negotiations

The delay is also being driven by competing pressure from industry stakeholders. Banking groups have intensified lobbying efforts. They argue that allowing stablecoins to offer yield could draw deposits away from traditional institutions. This growing banking lobby pressure could affect lending capacity.

On the other side, crypto firms continue to push for flexibility. Brian Armstrong and Faryar Shirzad have supported approaches that preserve limited reward mechanisms. They emphasize the need for regulatory clarity while maintaining functionality.

Meanwhile, Brad Garlinghouse has highlighted the broader importance of clear rules for the digital asset sector. This comes as the legislative process continues.

This ongoing divide underscores the broader question of how closely stablecoins should resemble traditional banking products.

>>> Related: US Crypto Bill Faces Deadlock as Banks Reject Yield Deal

Outlook Hinges on Final Compromise

Despite the delay, there are still indications that the legislative process is moving forward. Some lawmakers and industry participants continue to reference the possibility of Senate action in the near term. Nonetheless, the timing remains uncertain and depends on resolving the yield debate.

The next key step is the release of updated draft language. Once that occurs, the bill can proceed to committee markup. It can then move closer to a potential floor vote.

For now, the CLARITY Act update shows that progress is continuing, but timing has again slipped. The resolution of the yield issue is likely to determine both the pace of the legislative process and the future role of stablecoins within the financial system.