Stablecoin

Republican

Chair

Yield

<ul>
 <li>Senators filed 100+ amendments to the CLARITY Act, raising pressure ahead of Thursday’s key Senate markup session.</li>
 <li>Stablecoin yield restrictions became a major dispute as banks push tougher limits on crypto interest-style products.</li>
 <li>Elizabeth Warren proposed over 40 amendments targeting crypto firms, Fed access, DeFi rules, and ethics safeguards.</li>
</ul>
<p>Members of the Senate Banking Committee have filed more than 100 amendments to the Senate’s crypto market structure legislation ahead of Thursday’s markup session, setting up a contentious debate over stablecoin regulation, ethics rules, and decentralized finance oversight.</p>
<p>According to reporting from <a href="https://subscriber.politicopro.com/article/2026/05/senate-banking-members-prep-amendments-to-crypto-bill-ahead-of-markup-00918165" rel="noopener noreferrer nofollow">POLITICO</a>, the amendment package includes dozens of proposals from Democratic lawmakers alongside revisions from Republican sponsors. Banking Committee Chair Tim Scott is also expected to introduce a manager’s amendment that could replace the bill’s current base text.</p>
<h2 class="wp-block-heading" id="strong-stablecoin-yield-rules-become-central-flashpoint-strong"><strong>Stablecoin Yield Rules Become Central Flashpoint</strong></h2>
<p>One of the most closely watched amendments comes from Jack Reed and Tina Smith. Their proposal would tighten restrictions on crypto firms offering yield-bearing stablecoin rewards programs by changing the standard from “functionally equivalent” to “substantially similar” to traditional bank deposit interest.</p>
<p>The amendment reflects growing pressure from the banking industry, which argues that <a href="https://cryptofrontnews.com/banking-groups-push-clarity-act-stablecoin-yield-changes/" rel="noopener noreferrer nofollow">stablecoin yield</a> products could pull deposits away from traditional banks. Reports indicate that members of the American Bankers Association have sent more than 8,000 letters to Senate offices since last week urging lawmakers to strengthen the restrictions.</p>
<p>The revised Senate draft already prohibits third-party platforms from offering stablecoin rewards that resemble bank deposit interest products. However, the Reed-Smith amendment would significantly tighten that language and could become one of the defining votes during Thursday’s markup.</p>
<h2 class="wp-block-heading" id="strong-warren-pushes-aggressive-crypto-restrictions-strong"><strong>Warren Pushes Aggressive Crypto Restrictions</strong></h2>
<p>Elizabeth Warren reportedly submitted more than 40 amendments of her own, making her the most active individual filer ahead of the session.</p>
<p>One proposal would prevent the <a href="https://cryptofrontnews.com/custodia-loses-final-appeal-over-federal-reserve-account/" rel="noopener noreferrer nofollow">Federal Reserve</a> from granting master accounts to crypto companies. Such a restriction would effectively block many crypto firms from directly accessing core U.S. banking infrastructure even if broader crypto legislation passes.</p>
<p>Warren has also criticized the current draft over ethics provisions, arguing it lacks sufficient safeguards preventing federal officials from benefiting financially from crypto ventures while influencing regulation.</p>
<h2 class="wp-block-heading" id="strong-defi-legal-tender-and-developer-protections-also-targeted-strong"><strong>DeFi, Legal Tender, and Developer Protections Also Targeted</strong></h2>
<p>The amendment package extends beyond stablecoins and banking access. Senator Mark Warner reportedly filed amendments focused on decentralized finance restrictions contained in Title III of the legislation.</p>
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<p>Meanwhile, Reed submitted another amendment that would explicitly prohibit cryptocurrencies from being used as legal tender, including for tax payments.</p>
<p>Other Democratic proposals include sanctions enforcement measures, restoration of the Justice Department’s crypto enforcement team, and expanded ethics restrictions for elected officials.</p>
<p>At the same time, some amendments seek stronger protections for <a href="https://cryptofrontnews.com/visa-expands-stablecoin-pilot-to-nine-blockchain-networks/" rel="noopener noreferrer nofollow">blockchain</a> developers. Senator Catherine Cortez Masto proposed safe harbor language designed to shield software developers from money transmitter liability if they do not control customer funds.</p>
<h2 class="wp-block-heading" id="strong-committee-vote-faces-rising-political-pressure-strong"><strong>Committee Vote Faces Rising Political Pressure</strong></h2>
<p>Thursday’s markup now appears significantly more complicated than earlier expectations.</p>
<p>While Republicans likely retain enough votes to advance <a href="https://cryptofrontnews.com/senate-unveils-new-clarity-act-crypto-draft-ahead-of-thursdays-markup/" rel="noopener noreferrer nofollow">the bill</a> through committee, several analysts note that a strictly party-line outcome could weaken the legislation’s chances on the Senate floor, where a 60-vote threshold would likely require bipartisan support.</p>
<p>The latest developments also come after a previous markup attempt earlier this year reportedly collapsed amid disputes over stablecoin yield provisions and broader crypto oversight language.</p>
<p>With more than 100 amendments now filed, Thursday’s session could become one of the most consequential crypto policy debates in Congress this year.</p>
<p>The post <a href="https://cryptofrontnews.com/senate-banking-committee-faces-more-than-100-amendments-ahead-of-clarity-act-markup/" rel="noopener noreferrer nofollow">Senate Banking Committee Faces More Than 100 Amendments Ahead of CLARITY Act Markup</a> appears on <a href="https://cryptofrontnews.com" rel="noopener noreferrer nofollow">Crypto Front News</a>. Visit our website to read more interesting articles about cryptocurrency, blockchain technology, and digital assets.</p>

Senate Banking Committee Faces More Than 100 Amendments Ahead of CLARITY Act Markup

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