"Clarity, short for Digital Asset Market Clarity Act, passed the House of Representatives last year but has faced setbacks in the Senate Banking Committee as banks and stablecoin companies squabble over the question of how and when rewards can be paid on stablecoin balances. Now, as Senators convene to introduce amendments, Democrats are pushing for ethics guardrails related to the Trump family's crypto involvement."
"Members of the Senate Banking committee have filed over 130 proposed amendments ahead of Thursday's markup, with 44 coming from Sen. Elizabeth Warren (D-Mass.) alone, according to a copy of the proposed amendments reviewed by Fortune. While some of the proposed amendments are minor, others seek to advance the position of opponents to the bill, which include banking interests who fear stablecoins could denude bank deposits, and those who fear crypto's expansion is fraught with ethical and national security implications."
""I think it's going to pass, based on all the great progress that has been made on both sides of Congress, and the support this bill is getting from the White House," Steve Yelderman, general counsel of Ethereum-focused advocacy organization Etherealize, told Fortune. "That said, it's Washington, and anything could happen.""
"Clarity nearly reached a Senate Banking markup earlier this year before Coinbase pulled its support from the bill over a proposed ban on stablecoin rewards. Sens. Thom Tillis (R-N.C.) and Angela Alsobrooks (D-Md.) have since reached a deal on stablecoin yield, but bank lobbying groups are now grousing that the compromise is too friendly to stablecoin companies."
The Digital Asset Market Clarity Act would establish a U.S. regulatory framework for the crypto industry. The bill passed the House but has faced setbacks in the Senate Banking Committee, where banks and stablecoin companies dispute how and when stablecoin rewards can be paid. Senate committee markup is scheduled to begin, with more than 130 proposed amendments filed, including many from Sen. Elizabeth Warren. Democrats are seeking ethics guardrails tied to the Trump family’s crypto involvement. Banking interests oppose the bill over concerns that stablecoins could reduce bank deposits, while other opponents cite ethical and national security risks. The bill previously neared markup before Coinbase withdrew support over a proposed ban on stablecoin rewards, later replaced by a yield deal that some banking groups now criticize as too favorable.
#cryptocurrency-regulation #stablecoins #us-senate-banking-committee #legislation #ethics-and-compliance
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