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,accordingto 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 couldreverse momentum of the bill.
“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 Chambersenta 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 triggersignificant deposit outflowsfrom 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 CEOBrian Armstrongand others have pushed for more favorable stablecoin provisions.
Source: ZeroHedge News
