Senator Tillis Demands Strong Ethics Regulations for CLARITY Act... Legislative Uncertainty Intensifies Ahead of May Deadline

As the U.S. Senate enters a final push to pass the CLARITY Act, Senator Thom Tillis (R-NC) has emerged as a decisive variable by setting the inclusion of strong ethics and conflict-of-interest provisions as a condition for his support. According to reports on April 27, 2026, Tillis's demand is acting as a new obstacle delaying the final agreement on the bill. Major analytical firms such as TD Cowen and Galaxy have lowered the probability of the bill's passage to below 50%, analyzing that the legislative window is rapidly closing before the 2026 midterm election cycle begins in earnest.

I will not support the crypto market structure bill unless conflict-of-interest provisions are included.

Senator Tillis maintains that strict ethical guidelines are essential to ensure transparency in the crypto market. TD Cowen identified him as the 'latest obstacle' in the legislative process, warning that a vote by the Senate Banking Committee might be impossible if his demands are not met. This firm stance, coupled with months of discussions regarding stablecoin yields, is shaking the bill's entire timeline.

Viability of the CLARITY Act: A 50-50 Gamble

Contrary to optimistic views within the industry, financial analysts hold a much more cautious perspective. TD Cowen analyst Jaret Seiberg put the probability of the bill's passage at approximately 33%, emphasizing that the only path for Congress to process this bill is through a bipartisan agreement. As of late April 2026, the passage probability on the Polymarket prediction market also remains around 50%, showing that opinions among market participants are sharply divided.

• ['Ethics Clause: Whether the conflict-of-interest guidelines demanded by Senator Tillis will be introduced.', 'World Liberty Financial: Political disputes over the Trump family\'s crypto project and the burden of support for Democrats.', 'Iran-related Anti-Money Laundering (AML): Pressure to strengthen regulations following the possibility of paying Hormuz Strait tolls in cryptocurrency.', 'Credit Card Competition Act: Attempts to merge unrelated credit card legislation into the crypto bill.', 'Stablecoin Yields: Technical disagreements over the regulatory approach for yield-bearing stablecoins.']

In particular, the debate over stablecoin yields is a key factor delaying the release of the bill's text. The announcement of the draft bill, originally expected in mid-April 2026, was postponed as intensive negotiations continued over the yield-related language proposed by Senator Tillis. Senator Tim Scott, Chairman of the Senate Banking Committee, has yet to set an official markup schedule.

As legislative delays continue, the movements of regulatory authorities are becoming more concrete. On March 17, 2026, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) issued joint guidance applying federal securities laws to certain crypto activities, attempting to fill the legislative void left by Congress. These preemptive actions by regulators are adding more pressure on Congress to establish a clear legal framework.

Market participants are showing varied responses amidst this legislative uncertainty. Asset manager Strive recently demonstrated corporate commitment to crypto adoption by purchasing an additional 789 Bitcoins worth $60 million. Conversely, macro-economic anxiety is spreading across the market, with $1.2 billion flowing out of crypto funds ahead of the Federal Open Market Committee (FOMC) decision.

May Deadline: A Watershed Moment for Legislative Success or Failure

Senator Bernie Moreno warned that if the bill is not brought to the Senate floor by May 2026, legislative momentum could be completely lost as the midterm election phase begins. May is expected to be a decisive month for the fate of the CLARITY Act, with the Senate Banking Committee's markup serving as the first signal.

Ultimately, the direction of the CLARITY Act depends on finding a compromise between the ethical guidelines raised by Senator Tillis and the regulation of stablecoin yields. If Congress fails to reach a bipartisan agreement within the time constraint of May 2026, the U.S. crypto market is likely to enter a long tunnel of regulatory uncertainty once again. The release of the final bill text will be the most important milestone determining the future direction of the market.