Senate Banking Committee Faces Over 100 Amendments to CLARITY Act Ahead of Thursday Vote

Wave of Amendments Targets Crypto Market Structure Bill

Senate lawmakers have submitted more than 100 amendments to the CLARITY Act in advance of Thursday's markup vote by the Banking Committee. The legislative session will determine whether the controversial crypto market structure bill advances to the Senate floor.

According to POLITICO, the majority of proposed changes originated from Democratic senators, while Republicans filed a more limited set of revisions focused on provisions previously discussed during months of closed-door negotiations. Committee members are scheduled to review and vote on these amendments during Thursday's hearing.

Stablecoin Yield Restrictions Remain Contentious

The Senate Banking Committee released an updated CLARITY Act draft on Monday, reigniting discussions that had stalled earlier this year following Coinbase's public withdrawal from negotiations. The cryptocurrency exchange had opposed earlier restrictions on stablecoin reward programs, prompting lawmakers and industry stakeholders to revisit the bill's language.

One of the most significant new amendments directly challenges the stablecoin yield compromise included in the revised draft. Senators Jack Reed and Tina Smith are pushing for stricter language that would ban interest-like rewards using a "substantially similar" standard, replacing the current "functionally equivalent" test tied to bank deposits.

Banking organizations have already voiced strong opposition to the revised language. Earlier this week, the American Bankers Association and four additional financial trade groups argued that the proposal could still permit stablecoin products to compete with traditional savings accounts by offering reward mechanisms that resemble deposit interest.

Ethics and Developer Protections Added to Debate

Beyond stablecoin regulations, several amendments address ethics restrictions and criminal liability related to cryptocurrency activity. Senator Chris Van Hollen has introduced a measure that would prohibit 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 resumed negotiations earlier this year. During Consensus Miami 2026, Senator Kirsten Gillibrand stated that Democratic support would hinge on the inclusion of conflict-of-interest protections in the legislation. Senate Banking Committee ranking member Elizabeth Warren subsequently criticized the revised draft for omitting those restrictions.

Developer protections have also emerged through a proposal from Senator Catherine Cortez Masto. Her amendment would establish a safe harbor protecting software developers from criminal liability for failing to register as money transmitters. Crypto advocacy groups have endorsed similar language connected to the Blockchain Regulatory Certainty Act, which was incorporated into the committee's updated draft earlier this week.

Under that provision, developers and infrastructure providers who do not control customer funds would not automatically be subject to money transmitter regulations. However, concerns from law enforcement officials persist. 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 Provisions and Political Hurdles

Further amendments expected during Thursday's session include sanctions provisions, rules governing 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 maintain control of the Banking Committee and hold the Senate majority, though internal disagreements remain. Senator Thom Tillis previously warned he would not support the bill unless changes were made to several provisions.

Outside Capitol Hill, lobbying pressure has escalated ahead of the markup. Coinbase CEO Brian Armstrong stated during an X livestream on May 12 that the latest draft preserved the crypto industry's "must haves," while banking lobby groups continued urging senators to impose stricter limits on stablecoin rewards.

Even if the Banking Committee advances the legislation this week, senators would still need to reconcile 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 progress.