Clarity Act: NC Blockchain Urges Sen. Tillis to Advance Markup, Backs Stablecoin Yield

Key Insights:

• The North Carolina Blockchain group is rallying to push the CLARITY Act markup on the Senate schedule.
• They sent a letter to Senator Thom Tillis, criticizing the proposed ban on stablecoin yield.
• Senator Tillis stated that he will reveal the stablecoin yield text before the markup date.

A North Carolina-based blockchain lobbying group is urging the Senate Banking Committee to push the CLARITY Act markup. It argued that inaction and delaying crypto regulation will drive financial innovation away from the country.

NC Blockchain Group Joins Push to Advance CLARITY Act Markup

In an April 24 letter, the North Carolina Blockchain & AI Initiative called on Senator Thom Tillis to move the CLARITY Act to a committee markup. It said the legislation will be vital to provide regulatory clarity and help the state remain competitive in the growing digital assets sector.

“We write to strongly urge your continued leadership in moving the Clarity for Payment Stablecoins Act to a formal markup,” the letter stated. The group also believes that the CLARITY Act is necessary to keep financial innovation in the United States.

In the letter, the group is directly countering the concerns of the North Carolina Bankers Association about yield-bearing stablecoin products. The group said that previous legislation, the GENIUS Act, has already addressed the systemic risks associated with so-called shadow banking through federal oversight of stablecoin issuers.

“It moved these activities from the shadows into a regulated sunlight that protects the entire financial system,” they added. The group pointed out that the CLARITY Act would also bring other segments of the digital asset sector under oversight.

They also expressed concern about banning yield on stablecoins. Instead of mitigating risk, it could lead to funds flowing into unregulated areas, creating risks. Hence, the letter suggested other approaches, such as rewarding activity, could strike a balance without compromising competitiveness.

The initiative also emphasized the economic interests of North Carolina. It cited Charlotte’s role as one of the largest banking hubs in the USA. Thus, they argued that clear federal regulations would enable North Carolina banks to enter the digital asset market without violating existing regulations.

Will the updated Senate Markup Schedule Be Announced on Monday?

However, the CLARITY Act’s future is unclear. FOX Journalist Eleanor Terrett has reported that the crucial Senate markup for the crypto bill can face further delays. “Friday has come and gone with no word… on scheduling a Clarity Act markup for next week,” she wrote. Terrett added that time is running short before the Senate’s planned recess.

She also noted that Monday serves as the “official cutoff before the Senate heads into a weeklong recess.” Hence, either the updated markup schedule should come by Monday, or it’s unlikely that Congress will take action in April.

She also said that the Senate Banking Committee has other priorities. It includes a vote on April 29 for the nomination of Kevin Warsh to head the Federal Reserve.

Meanwhile, Senator Tillis has asked for more time to meet with bank lobbyists on the matter of stablecoin yield. Also, he has revealed plans to release a draft of the stablecoin legislation publicly before the markup. To date, there is no stablecoin yield draft.

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