Crypto vs Banks: Clarity Act Gets Over 100 Amendments Before Final Vote

Key Insights:

• The amendments to the crypto market structure bill include points like stablecoin yield rules, ethics provisions, and DeFi protections.
• Lawmakers Jack Reed and Tina Smith proposed banking industry-backed changes. They could increase the divide between crypto firms and traditional banks.
• New proposals also seek to block cryptocurrencies from being used as legal tender or for tax payments.

The U.S. Senate Banking Committee received more than 100 amendments ahead of Thursday’s CLARITY Act markup vote. This deepened the disagreements around stablecoin yields, DeFi protections, and crypto banking access.

The proposals exposed growing tension between crypto firms, traditional banks, and lawmakers backing competing approaches to digital asset regulation.

Clarity Act Update: US Banking Committee Receives 100 Amendments

The U.S. Senate Banking Committee received over 100 amendments to the CLARITY Act ahead of its scheduled markup vote.

A leaked list obtained by POLITICO reveals these extensive proposed changes to the crypto market structure legislation. Lawmakers now face a massive volume of revisions as they prepare to finalize the regulatory framework.

The amendments focused heavily on stablecoin yields, ethics rules, and legal protections for DeFi developers.

A day before, on May 11, the Senate Banking Committee released a 309-page draft file covering rules for stablecoin yield, DeFi protection, etc. The Banking Committee chairman, Tim Scott, said:

This bill reflects serious, good-faith work across the Committee and delivers the certainty, safeguards, and accountability Americans deserve.

It puts consumers first, combats illicit finance, and cracks down on criminals and foreign adversaries. It also keeps the future of finance here in the United States. Now it is time to move forward.

Journalist Eleanor Terrett from Crypto In America noted that Senator Elizabeth Warren filed 40 out of these 100 amendments. Warren alone authored nearly half of the total submissions. Reportedly, She is looking to prohibit the Federal Reserve from issuing master accounts to digital asset firms.

Sen. Warren has been actively working to keep crypto out of the banking system. She has also been vocal in opposing crypto’s entry into mainstream finance.

Choose Crypto or Banks: Senators Put Clarity Act to Test

Senators Jack Reed and Tina Smith filed a new amendment to the crypto market structure bill. This proposal preceded the markup session scheduled for Thursday, May 14. The proposed amendment would change the banking industry’s stablecoin yield restrictions.

This further increases pressure on the lawmakers to choose between supporting crypto industry interests or traditional banking sector concerns. Such a proposal could likely put Republican Senators at a crossroads, despite their support for the crypto industry.

Journalist Eleanor Terrett reported that American Bankers Association members sent over 8,000 letters to U.S. Senate offices. These members are urging lawmakers to revise the stablecoin yield compromise.

They are also urging lawmakers to revise the proposed stablecoin yield compromise currently under discussion in crypto market structure bill.

The report added that the lobbying effort has so far focused on written outreach. Terret stated that it does not appear to include a separate phone call campaign.

Crypto As A Legal Tender Faces Hurdle?

While the Trump administration has always shown a willingness to make crypto a legal tender. However, Senator Jack Reed has proposed an amendment that would prohibit cryptocurrencies from being treated as legal tender. It includes preventing their use for tax payments.

Terrett also pointed out that Warren Davidson introduced legislation last year that sought to allow taxpayers to use Bitcoin for tax payments. This shows contrasting approaches toward crypto adoption among U.S. lawmakers.

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