- U.S. senators filed more than 100 amendments ahead of the Senate Banking Committee’s vote on the Clarity Act.
- Proposed amendments target stablecoin rewards, DeFi regulation, CBDC bans, sanctions rules, and crypto ethics standards.
- Ethics provisions tied to Donald Trump’s crypto businesses have become one of the biggest political flashpoints.
- Banking groups continue opposing stablecoin reward language over fears of deposit outflows.
- The Clarity Act would become the first major federal framework regulating the crypto industry in the United States.
Crypto Legislation Reaches Critical Stage
The U.S. Senate Banking Committee is preparing for one of the most important crypto regulation votes in American history as lawmakers filed more than 100 proposed amendments to the Clarity Act ahead of Thursday’s markup session.
The bill would establish the first broad federal framework governing digital assets in the United States, including oversight responsibilities between the SEC and CFTC, rules for stablecoins, and treatment of decentralized finance protocols.
However, the growing number of amendments highlights how politically sensitive crypto regulation has become in Washington.
Stablecoins and DeFi Become Major Battlegrounds
One of the largest disputes centers around stablecoin rewards programs. Senators previously negotiated compromise language designed to prevent stablecoins from functioning like interest-bearing bank accounts.
Several lawmakers are now attempting to revise or tighten that language further, while banking lobby groups argue the bill still creates risks for traditional deposits.
Decentralized finance has also become a major focus. Some amendments seek to increase Treasury oversight over DeFi trading systems, while others would remove protections for non-custodial software developers that many crypto advocates strongly support.
Meanwhile, Republican lawmakers continue pushing anti-CBDC provisions that would formally block the Federal Reserve from launching a U.S. central bank digital currency.
Trump’s Crypto Ties Spark Ethics Debate
Ethics concerns tied to President Donald Trump and his family’s crypto businesses have become one of the biggest obstacles facing the legislation.
Several Democratic senators proposed amendments that would block presidents, lawmakers, and federal officials from owning or promoting digital assets while in office.
The debate intensified after reports estimated that Trump-linked crypto ventures generated over $1.4 billion since returning to office.
Lawmakers are now negotiating behind closed doors to reach compromise ethics language before the committee vote.
Despite the controversy, crypto industry groups including the Blockchain Association and the Crypto Council for Innovation strongly support the latest version of the bill and argue it would finally provide long-awaited regulatory clarity for the U.S. market.
