The Senate Banking Committee’s CLARITY Act faces heavy opposition as it heads into Thursday’s markup.
Senator Elizabeth Warren reportedly filed more than 40 amendments ahead of the Tuesday 5 p.m. ET deadline, and members of the American Bankers Association sent over 8,000 letters to Senate offices in less than a week urging changes to the bill’s stablecoin yield provisions.
More Than 100 Amendments Submitted
The exact number of amendments set for Thursday’s markup is still being confirmed, but a list obtained by Politico indicates there are more than 100 proposals. By comparison, 137 revisions were submitted before a previous markup scheduled for January that was later canceled.
Warren’s submissions span a wide range of restrictions. One notable amendment would bar the Federal Reserve from issuing master accounts to crypto companies, effectively cutting those firms off from core U.S. banking infrastructure.
Warren also criticized the updated bill on X, saying it lacked ethics provisions related to President Donald Trump’s crypto businesses. “No bill should move through the Banking Committee without real ethics guardrails,” she wrote.
The ethics dispute has complicated negotiations. Analyst Simon Dedic argued that Trump’s meme coin and related events were a major obstacle to progress on the CLARITY Act, with Democrats demanding conflict-of-interest safeguards before they will support the legislation.
Another amendment, filed by Senator Jack Reed of Rhode Island, would prohibit the use of crypto as legal tender, including for tax payments. That position contrasts with a bill introduced last year by Representative Warren Davidson, which would have allowed Bitcoin to be used in that way.
Senators Reed and Tina Smith of Minnesota also filed a joint amendment that incorporates bank-requested changes to the stablecoin yield language. According to journalist Brendan Pedersen, that proposal will force senators to choose between supporting crypto-friendly language or siding with the banks in a single vote—putting Republicans in an uneasy position given their traditional support for both sectors.
Bank Lobbying and Crypto Advocacy Counterpressure
Members of the American Bankers Association reportedly sent more than 8,000 letters to Senate offices starting last Friday, pressing lawmakers to revise the bill’s stablecoin yield compromise.
Crypto advocacy group Stand With Crypto countered with its own activity numbers, reporting that its supporters had called Congress 8,000 times, sent 300,000 emails in recent months to protect stablecoin rewards, and registered nearly 1.5 million contacts with lawmakers in support of the CLARITY Act overall.
Proponents of digital assets argue that the banking industry’s lobbying campaign aims to block competition from yield-bearing stablecoins. Senator Bernie Moreno accused banks of trying to “kill stablecoins that would let everyday Americans earn real yields on their own money,” calling the industry a “cartel” protecting low-interest deposit models.
Observers note that the fight may not end with Thursday’s committee vote. Reporter Sander Lutz says banking policy leaders are preparing for another push on the Senate floor if they lose the markup battle over yield restrictions.
At the same time, crypto journalist Eleanor Terrett reported that Senate Majority Leader Chuck Schumer privately encouraged Democrats to work toward supporting the bill, indicating bipartisan pressure to find a path forward.