More than 100 amendments have been attached to the Senate’s crypto market structure bill ahead of Thursday’s Banking Committee markup.
Summary
- Senate lawmakers filed more than 100 amendments to the CLARITY Act ahead of Thursday’s markup vote.
- Democratic senators proposed tighter stablecoin yield restrictions and new ethics rules tied to crypto holdings by public officials.
- Developer protections and plans to restore the Justice Department’s crypto enforcement unit were also added to the amendment list.
POLITICO reported that most of the proposed changes came from Democratic senators, while Republicans submitted a narrower set of revisions tied to sections already debated during months of closed-door negotiations. Committee members are expected to review and vote on the amendments during Thursday’s hearing before deciding whether to move the legislation to the Senate floor.
Released Monday, the Senate Banking Committee’s updated CLARITY Act draft revived talks that had stalled earlier this year after Coinbase publicly stepped away from negotiations. The company had objected to earlier restrictions tied to stablecoin reward programs, prompting lawmakers and industry groups to reopen discussions around the bill’s language.
One of the newest amendments targets the stablecoin yield compromise included in the revised draft. Senators Jack Reed and Tina Smith are seeking tougher wording that would prohibit interest-like rewards using a “substantially similar” standard instead of the current “functionally equivalent” test tied to bank deposits.
Banking organizations have already criticized the revised language. Earlier this week, the American Bankers Association and four other financial trade groups said the proposal could still allow stablecoin products to compete with traditional savings accounts by offering reward mechanisms that resemble deposit interest.
Senate debate expands beyond stablecoins
Away from the stablecoin fight, several amendments focus on ethics restrictions and criminal liability tied to crypto activity. Senator Chris Van Hollen has proposed a measure that would prevent the president, vice president, members of Congress, senior executive officials, and their families from holding or promoting crypto-related businesses.
Ethics provisions have remained unresolved since lawmakers restarted negotiations earlier this year. During Consensus Miami 2026, Senator Kirsten Gillibrand said Democratic support would depend on conflict-of-interest protections being added to the legislation. Senate Banking Committee ranking member Elizabeth Warren later criticized the revised draft for leaving those restrictions out.
Developer protections have also resurfaced through a proposal from Senator Catherine Cortez Masto. Her amendment would create a safe harbor protecting software developers from criminal liability for failing to register as money transmitters.
Crypto advocacy groups have supported similar language tied to the Blockchain Regulatory Certainty Act, which was folded into the committee’s updated draft earlier this week. Under that section, developers and infrastructure providers that do not control customer funds would not automatically fall under money transmitter rules.
Concerns from law enforcement officials, however, have not disappeared. Punchbowl News reported this week that Senators Chuck Grassley and Cynthia Lummis reached a separate agreement designed to preserve prosecutors’ ability to pursue crypto-related financial crimes.
Additional amendments expected during Thursday’s session include sanctions provisions, rules tied to institutional crypto activity, and a proposal from Senator Andy Kim seeking to restore the Justice Department’s National Cryptocurrency Enforcement Team, which was dismantled last year.
Republicans still control the Banking Committee and hold the Senate majority, though internal disagreements remain. Senator Thom Tillis previously warned he would not back the bill unless changes were made to several provisions.
Outside Capitol Hill, lobbying pressure has intensified ahead of the markup. Coinbase CEO Brian Armstrong said during an X livestream on May 12 that the latest draft preserved the crypto industry’s “must haves,” while banking lobby groups continued pressing senators for stricter limits on stablecoin rewards.
Even if the Banking Committee advances the legislation this week, senators would still need to combine it with the separate version approved earlier by the Senate Agriculture Committee. Passage on the Senate floor would require support from at least 60 lawmakers, forcing Republican sponsors to secure Democratic votes before the bill can move forward.
