The U.S. Senate Banking Committee has received more than 100 proposed amendments to the CLARITY Act ahead of a key markup session, highlighting deep divisions over stablecoins, crypto oversight, and the role of digital assets in the financial system.
The U.S. Senate Banking Committee is preparing for one of the most consequential crypto legislative debates in recent years after lawmakers submitted more than 100 amendments to the Digital Asset Market Clarity Act, commonly known as the CLARITY Act. The amendments arrive ahead of the committee’s scheduled markup session on May 14, where senators will debate changes to the bill before deciding whether it advances to the Senate floor.
The CLARITY Act is designed to establish a comprehensive federal framework for regulating digital assets in the United States. The legislation aims to formally divide oversight responsibilities between the Securities and Exchange Commission and the Commodity Futures Trading Commission, resolving years of jurisdictional disputes that have created regulatory uncertainty for crypto firms and investors.
According to reports citing leaked amendment documents reviewed by Politico, Senator Elizabeth Warren submitted more than 40 amendments alone. One proposed amendment would prohibit the Federal Reserve from granting master accounts to crypto-related companies, a longstanding issue for digital asset firms seeking direct access to U.S. banking infrastructure. Senator Jack Reed also proposed amendments that would ban cryptocurrencies from being used as legal tender and restrict the use of digital assets for tax payments.
The unusually high number of amendments signals unresolved disagreements over several core provisions of the legislation, including stablecoin regulation, decentralized finance oversight, anti-money laundering obligations, and tokenized securities rules. Industry lobbying efforts have intensified in recent weeks as banking groups and crypto companies push competing priorities ahead of the markup process.
Stablecoin and DeFi Provisions Draw Heavy Debate
One of the most contested issues within the CLARITY Act remains the treatment of stablecoin yield products. The bill would prohibit interest payments on idle stablecoin balances in an effort to prevent stablecoins from functioning like uninsured bank deposits. However, the legislation would still allow transaction-based rewards tied to payment activity.
Banking trade groups have opposed portions of the proposal, arguing that stablecoin yield structures could accelerate deposit outflows from traditional financial institutions. Crypto industry advocates, meanwhile, argue that excessive restrictions could limit innovation and reduce the competitiveness of U.S.-based digital asset companies.
The revised draft of the CLARITY Act also includes expanded anti-money laundering obligations for crypto exchanges, brokers, and dealers by classifying them as financial institutions under the Bank Secrecy Act. Additional provisions address decentralized finance protocols, cybersecurity standards, insider trading rules, and tokenized asset regulation.
The legislation further clarifies that tokenized versions of traditional securities would remain under SEC jurisdiction, even when issued or traded on blockchain infrastructure. Lawmakers also included provisions requiring regulators to study the treatment of tokenized securities and post-quantum cryptography standards.
Crypto Industry Watches Key Senate Vote
The Senate Banking Committee’s markup session represents a critical procedural milestone for the crypto industry, which has pushed for federal market structure legislation for several years. The House of Representatives previously passed its version of the CLARITY Act in 2025 with bipartisan support, but Senate negotiations have repeatedly stalled amid disagreements over consumer protection, ethics standards, and financial stability concerns.
If approved by committee, the bill would still require reconciliation with separate Senate Agriculture Committee provisions before advancing to a full Senate vote. Analysts say the legislation faces a narrow legislative window before election-year political pressures complicate negotiations further.
The outcome of the markup process is expected to shape the future of U.S. crypto regulation, particularly regarding how digital assets are classified and which federal agencies will oversee trading activity. Industry participants view the bill as one of the most significant regulatory proposals for digital assets since the emergence of Bitcoin and Ethereum into mainstream financial markets.
