The Senate Banking Committee got more than 100 amendments to the CLARITY Act ahead of this week’s markup. According to reports, lawmakers will weigh whether to advance the bill and debate changes to stablecoins, regulatory authority, disclosure rules, and national security. After years of court fights and uncertainty, the CLARITY Act aims to set a federal rulebook for digital assets.
Senator Elizabeth Warren proposed a big batch of revisions, with reports indicating that she submitted more than 40 amendments, many of which were aimed at consumer protection and stricter supervision. One of her changes would restrict the Federal Reserve from providing master accounts to crypto companies, a move she thinks would curtail bank-like benefits for dangerous companies. Warren’s moves imply a drive for tighter guardrails in any final bill.
Also, Sen. Jack Reed submitted wording that would outright ban the use of cryptocurrencies as legal tender. His plan would also ban payment of taxes in crypto, clearly defining the role that digital currencies can play in official payments. Those proposals underscore the growing concern among some senators about crypto’s societal and fiscal value.
Major Policy Fights
Stablecoins and yield rules sit at the center of the amendment fight. The CLARITY Act draft would largely ban bank‑style passive interest on simple stablecoin deposits unless the issuer becomes a licensed bank, while allowing activity‑based rewards like staking. Senators have submitted competing language to tighten or loosen that restriction, and critics ask whether the distinction is workable in practice.
Another flashpoint is which federal agency regulates tokens. The bill largely separates authority between the SEC for token offerings and the CFTC for spot trading and digital commodities. Some amendments would give the SEC broader enforcement powers over fraud and insider trading, while others would expand the CFTC’s oversight of exchanges and dealers. How those lines are drawn will influence litigation and rulemaking for years to come.
Subsequent amendments strengthen anti-money laundering and counter-terrorist financing legislation and provide transparency requirements for issuers and platforms. Supporters believe the tougher requirements are to protect national security and consumers. Critics, however, say the heavy rules would drive business abroad. Other amendments would include penalties and safeguards against the exploitation of token railroads by foreign adversaries.
Ethics and developer liability drew proposals. Some senators want limits on officials’ crypto holdings and business ties. Others seek safe harbors for developers to avoid criminal liability for code, aiming to prevent chilling innovation.
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