《Clarity Act》 Faces Key Showdown This Week: Bank Lobbying May Lead to Vote Delay Until May

April 20th — The U.S. “Clarity Act” has entered a critical negotiation phase this week, with its timeline (committee review in April or delay to May) hinging on recent developments. The Senate Banking Committee kicked off the week by focusing on the confirmation hearing for Federal Reserve Chair nominee Kevin Wash, and must decide by Friday whether to schedule a vote on the bill for the week of April 27th. Banking groups led by the North Carolina Bankers Association are lobbying against the stablecoin yield restriction clause in the bill, urging members to contact Senator Thom Tillis’s office to push for amendments. Industry groups are also reportedly reaching out to other committee members. After over two months of talks, crypto and banking stakeholders reached a compromise late last month, with the crypto industry largely satisfied. However, calls for amendments from the banking side have intensified since a White House Economic Advisory Committee report downplayed stablecoin yields’ risks to the banking system. White House Cryptocurrency Committee Executive Director Patrick Witt criticized banks on X, accusing them of “lobbying further out of greed or ignorance.” Senator Tillis has proposed an in-person “crypto carnival” meeting, which could extend the timeline. He noted there are still unresolved issues but expressed optimism about scheduling a review in the coming weeks. Beyond the yield issue, the bill also needs to address ethical and DeFi-related clauses. This week’s progress will determine the bill’s fate, with markets closely watching.