The proposed CLARITY Act is heading into a crucial Senate Banking Committee markup on Thursday amid intensifying political opposition, growing pressure from the banking industry, and a flood of proposed amendments.
Reports indicate that Elizabeth Warren alone submitted more than 40 amendments ahead of Tuesday’s filing deadline, while members of the American Bankers Association reportedly sent over 8,000 letters to Senate offices within less than a week urging lawmakers to revise the bill’s stablecoin yield provisions.
More Than 100 Amendments Added Before Committee Review
Although the final number is still being verified, reports suggest that more than 100 amendments have already been proposed ahead of Thursday’s markup session.
For comparison, around 137 amendments were introduced before a previously scheduled January markup that was later canceled.
Warren’s proposed revisions reportedly target multiple areas of the legislation. One amendment would prevent the Federal Reserve from granting master accounts to cryptocurrency firms, a move that could significantly limit crypto companies’ access to core U.S. banking infrastructure.
The senator also criticized the latest version of the bill on X, arguing that it lacks sufficient ethics safeguards related to crypto businesses connected to Donald Trump.
Warren stated that no legislation should advance through the Banking Committee without meaningful ethical protections in place.
The debate over ethics provisions has become increasingly difficult for lawmakers to ignore. Last month, crypto analyst Simon Dedic claimed that Trump’s meme coin activities and crypto related fundraising dinners had become a major obstacle for the bill, with Democrats reportedly demanding stronger conflict of interest language before offering support.
Another amendment introduced by Jack Reed would prohibit cryptocurrencies from being recognized as legal tender, including for tax payments.
That proposal directly conflicts with legislation introduced last year by Warren Davidson, which sought to allow the use of bitcoin for tax payments.
Reed and Tina Smith also jointly proposed changes aligned with banking industry requests involving stablecoin yield regulations.
According to journalist Brendan Pedersen, the amendment could force senators into a politically difficult choice between supporting the banking sector or backing the cryptocurrency industry.
Banking Industry and Crypto Advocates Intensify Lobbying Efforts
The battle surrounding the CLARITY Act has sparked aggressive lobbying campaigns from both traditional finance groups and crypto advocates.
Members of the American Bankers Association have reportedly sent more than 8,000 letters to lawmakers since last Friday seeking changes to the legislation’s stablecoin yield framework.
At the same time, Stand With Crypto announced that its supporters have made approximately 8,000 calls to Congress and sent around 300,000 emails in recent months defending stablecoin rewards.
The organization also claimed that advocates have contacted lawmakers nearly 1.5 million times overall in support of the CLARITY Act.
Supporters of digital assets argue that the banking industry’s campaign is largely aimed at limiting competition from yield bearing stablecoins.
Bernie Moreno accused banks of attempting to suppress stablecoins that could allow ordinary Americans to earn higher yields on their money. He also described the banking industry as a cartel protecting traditional low interest deposit models.
Still, many observers in Washington believe the political fight surrounding the bill will continue beyond Thursday’s committee vote.
Reporter Sander Lutz stated that banking policy leaders are already preparing for another legislative battle on the Senate floor if they fail to secure tighter stablecoin yield restrictions during the markup process.
Meanwhile, crypto journalist Eleanor Terrett reported that Chuck Schumer has privately encouraged Democratic lawmakers to work toward supporting the bill.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
