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Republican Senator Thom Tillis has become the latest hurdle for the Senate’s crypto market structure bill after pushing for ethics and conflict-of-interest provisions, according to TD Cowen.
The North Carolina Republican has warned that he will oppose the CLARITY Act unless ethics language is added before the bill leaves the Senate. TD Cowen said that demand comes as legislation remains slowed by fights over stablecoin yield, DeFi rules and anti-money laundering requirements.
Ethics Language Could Affect Trump-Linked Crypto
Tillis’ position matters because any ethics provisions could touch crypto interests linked to President Donald Trump and his family. TD Cowen analysts said that makes the issue politically awkward for Republicans trying to move the bill with White House support.
Tillis said the bill must include ethics language or he would vote against it. Reports said the provisions under discussion would deal with how White House officials and other federal officials engage with digital assets.
Democrats have also pushed for tougher conflict-of-interest language, including limits on federal officials endorsing, issuing or profiting from digital assets. That puts Tillis closer to Democratic concerns on ethics, even as he remains part of the Republican negotiating group.
Senate Markup Slips Into May
The dispute comes after Tillis asked the Senate Banking Committee to delay its markup of the CLARITY Act until May. Galaxy reported that Tillis is a key negotiator on the committee and that a delay beyond mid-May could sharply cut the bill’s chances of becoming law in 2026.
The House passed the Digital Asset Market Clarity Act in July 2025 by a 294-134 vote. The bill would split oversight between the Securities and Exchange Commission and the Commodity Futures Trading Commission, with the CFTC overseeing many digital commodities and the SEC keeping authority over tokens tied to investment contracts.
The Senate version is still unsettled. Industry groups want the bill to create clear federal rules for exchanges, brokers, token issuers and decentralized finance. Critics want stronger safeguards on money laundering, investor protection and political conflicts.
TD Cowen Sees Lower Odds of Passage
Recent coverage said TD Cowen cut its estimate for passage this year to one in three. The firm pointed to several obstacles, including Tillis’ ethics demand, CFTC commissioner vacancies, conflict-of-interest concerns tied to Trump-linked crypto activity and worries about illicit finance.
Tillis has extra leverage because the bill will still need 60 votes on the Senate floor, meaning Republicans cannot easily lose support from their own side while still relying on Democratic backing. His decision not to seek re-election also allows him more room to hold his ground.
Crypto Lobby Faces a Narrowing Window
For the crypto industry, the main risk is timing. The CLARITY Act is still the sector’s strongest shot at a broad US market structure law, but every delay pushes it deeper into the election-year calendar.
If lawmakers can settle ethics language, stablecoin yield and DeFi oversight in May, the bill could still move. If not, the Senate may miss its best remaining window to move the bill this year.
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Fhumulani Lukoto
Cryptocurrency Journalist
Fhumulani Lukoto holds a Bachelors Degree in Journalism enabling her to become the writer she is today. Her passion for cryptocurrency and bitcoin started in 2021 when she began producing content in the space. A naturally inquisitive person, she dove head first into all things crypto to gain the huge wealth of knowledge she has today. Based out of Gauteng, South Africa, Fhumulani is a core member of the content team at Coin Insider.