Sen. Thom Tillis Emerges as Key Player in Stablecoin Yield Standoff

• Thom Tillis is weighing stablecoin yield rules in the Clarity Act after meetings with banks and crypto firms.
• Banks warn stablecoin rewards could pull deposits from traditional institutions and reshape financial liquidity.
• Ted Cruz also seeks to remove a sunset clause from a proposed U.S. CBDC ban in separate legislation.

North Carolina Republican Senator Thom Tillis now plays a decisive role in negotiations over the Clarity Act, according to Crypto in America. The dispute is on stablecoin yield rules that have stalled the bill for nearly two months as lawmakers, banks, and crypto firms push competing arguments.

Tillis Enters Stablecoin Yield Negotiations

Senator Thom Tillis recently held several meetings with crypto industry representatives and White House officials. During those discussions, he reviewed legislative drafts from negotiations between banks and digital asset companies. The talks focus on stablecoin yield rules within the Clarity Act.

Banks argue that generous reward structures could encourage deposit flight from traditional institutions. According to industry sources, Tillis remains cautious about several industry proposals. He is considering hosting representatives from Coinbase and banking trade groups in a joint meeting.

The meeting would allow each side to present arguments directly before he decides his position. However, sources said the additional time could frustrate White House officials seeking faster progress.

Tillis’ vote carries weight because the Senate Banking Committee previously delayed a markup on the bill. Coinbase withdrew support after Tillis and Senator Angela Alsobrooks proposed amendments limiting stablecoin rewards.

CLARITY Act Stall and Industry Response

Negotiations around stablecoin yield have dominated the discussion surrounding the Clarity Act. According to Cody Carbone, CEO of the Digital Chamber, discussions with Tillis remain constructive.

Carbone told Crypto In America he believes the talks are moving in the right direction. However, negotiators acknowledge the issue has delayed progress for weeks. Other stakeholders say the yield debate has overshadowed additional policy disputes.

Notably, unresolved topics include decentralized finance oversight and conflict-of-interest rules for government officials holding crypto assets. Trade groups now monitor the timeline closely. One industry executive said lawmakers still hope to schedule a Senate Banking Committee markup in late March.

Cbdc Ban Debate Adds Pressure

Meanwhile, lawmakers are debating a separate digital currency issue. A provision in the 21st Century ROAD to Housing Act would temporarily ban a Federal Reserve central bank digital currency. However, the proposal includes a sunset clause expiring in 2030.

Critics argue the clause could reopen the door for a retail CBDC afterward. Senator Ted Cruz has filed an amendment to remove the sunset provision. He plans to seek a vote during Senate consideration of the housing legislation.

At the same time, Representative Michael Cloud led 32 House Republicans in urging a permanent CBDC ban. The group also included Representative Anna Paulina Luna. In a letter to congressional leadership, the lawmakers warned they could oppose the housing bill without a permanent prohibition.