Senate Progresses Toward Crypto Regulatory Framework as Tillis Signals Markup

The path for the Digital Asset Market Clarity Act has cleared a significant hurdle as Senator Thom Tillis signaled his support for moving the bill toward a markup hearing. The legislation, viewed as the primary objective for the crypto industry in Washington, aims to fully integrate digital assets into the U.S. financial system. The delay had previously been driven by banking lobbyists concerned that stablecoin yields could undermine traditional interest-bearing deposits. Tillis stated that these concerns have been largely addressed, paving the way for a potential mid-May hearing by the Senate Banking Committee. Time is of the essence, with only 11 weeks remaining in the Senate calendar before midterm election activities take precedence. Failure to advance the bill now could be fatal to its 2026 prospects, as the remaining schedule offers little flexibility. Despite the momentum, the bill faces remaining challenges. These include a proposed ethics ban on government officials holding crypto interests—a move targeted at the Trump family—and a push by Senator Chuck Grassley to move DeFi-related protections through the Judiciary Committee. If passed, the act would provide the legal certainty required for broader institutional adoption. While the House passed its own version last year, final alignment between the two chambers remains a necessary step before the bill reaches President Trump's desk for signature.