Home » Crypto News Share: Share: The Senate Banking Committeeâs CLARITY Act is heading into Thursdayâs markup, buried under opposition. m. ET deadline, and American Bankers Association members sent over 8,000 letters to Senate offices in less than a week demanding changes to the billâs stablecoin yield rules.
The total number of proposed amendments going into Thursday is still being confirmed, but according to a list obtained by Politico, there have been more than 100 proposed. To put things in perspective, a total of 137 revisions were proposed before the markup scheduled for January, which was canceled. Warrenâs batch alone covers a wide range of restrictions.
One amendment that stood out would bar the Federal Reserve from issuing master accounts to crypto companies, which would effectively cut such firms off from the core infrastructure of the US banking system. The lawmaker also attacked the updated bill on X, arguing that it lacked ethics provisions tied to President Donald Trumpâs crypto businesses. âNo bill should move through the Banking Committee without real ethics guardrails,â she wrote.
That dispute has become harder for negotiators to avoid. Late last month, analyst Simon Dedic claimed that Trumpâs meme coin and his crypto-related dinners were part of the reason the CLARITY Act was going nowhere, with Democrats demanding conflict-of-interest language before backing the legislation. Another revision, filed by Senator Jack Reed of Rhode Island, would prohibit crypto from being used as legal tender, including for paying taxes.
That proposal runs directly counter to a bill Representative Warren Davidson introduced last year that would have allowed Bitcoin to be used for precisely that purpose. - Trump Heads to Beijing for High-Stakes Xi Summit: What It Means for Bitcoin - Circle Shares Jump 20% as Lawmakers Reach Stablecoin Deal - Coinbase Warns Against State-by-State Prediction Markets Chaos, Backs CFTC Oversight Senators Reed and Tina Smith of Minnesota also filed a joint amendment that would incorporate bank-requested changes to the stablecoin yield language. According to journalist Brendan Pedersen, the proposal will force senators to choose between crypto and the banks on a single vote, making it an uncomfortable moment for Republicans who tend to side with both.
Elsewhere, members of the American Bankers Association have reportedly sent more than 8,000 letters to Senate offices since last Friday, pushing lawmakers to change the billâs stablecoin yield compromise. 5 million times in support of the CLARITY Act overall. Those on the side of digital assets are framing the banking industryâs lobbying campaign as an attempt to block competition from yield-bearing stablecoins.
â He also described the banking industry as a âcartelâ protecting low-interest deposit models. But not everyone inside Washington thinks this fight ends at Thursdayâs committee vote. According to reporter Sander Lutz, banking policy leaders are already preparing for another push on the Senate floor if they lose the markup battle over yield restrictions.
Meanwhile, crypto journalist Eleanor Terrett reported that Senate Minority Leader Chuck Schumer privately encouraged Democrats to work toward supporting the bill.
