Senate Crypto Bill Faces 100+ Amendments Before Critical Thursday Vote

Senate Banking Committee to Vote on Crypto Regulation Amid 100+ Amendments

The Digital Asset Market Clarity Act is set for a critical markup vote on Thursday, May 14, at 10:30 a.m. in Room 538 of the Dirksen Senate Office Building, Washington, D.C. Lawmakers will debate and vote on over 100 proposed amendments to the bill, which could reshape U.S. digital asset regulation.

Key Details of the Upcoming Markup Session

• Date: May 14, 2025
• Time: 10:30 a.m.
• Location: Room 538, Dirksen Senate Office Building, Washington, D.C.
• Purpose: Debate and vote on amendments to the Digital Asset Market Clarity Act

Bill Expansion and Opposition Push

The updated draft of the bill has expanded to 309 pages, up from 278 pages in January. Senator Elizabeth Warren leads the opposition, filing over 40 amendments alone. Most proposed changes come from Democratic members of the Senate Banking Committee.

The surge in amendments follows a similar pattern from January, when 137 amendments were filed before the markup session was cancelled. This signals strong resistance to the bill despite efforts by supporters to push for a final vote.

Stablecoin Yield Dispute Remains Central

The bill’s treatment of stablecoin yield products is a major point of contention. Banking groups argue that such crypto products threaten traditional deposit bases, while crypto firms contend that reward programs enhance liquidity and customer activity without functioning as bank deposits.

The American Bankers Association has sent over 8,000 letters to Senate offices since last Friday, targeting a compromise brokered by Senators Thom Tillis and Angela Alsobrooks. This compromise:

• Prohibits stablecoin issuers from paying interest or yield to users who hold tokens passively.
• Preserves exceptions for rewards tied to genuine platform transactions and payment activity.

Senators Jack Reed and Tina Smith have filed amendments to further tighten these standards, targeting products that deliver returns resembling traditional interest-bearing deposit accounts.

Ethics and Developer Protections in the Spotlight

Senator Chris Van Hollen introduced an amendment to prohibit senior government officials and their families from owning or promoting crypto-related businesses. Democrats argue this provision is non-negotiable, citing President Trump’s ties to the crypto industry.

Republican sponsors have resisted the ethics provision, warning that such riders could fracture the coalition needed for the bill to advance. A recent draft of the bill already includes language shielding noncustodial developers from being classified as money transmitting businesses, with retroactive protection for past conduct.

Legislative History and Industry Impact

The CLARITY Act, formally H.R. 3633, passed the House on July 17, 2025, by a 294–134 bipartisan vote. However, the bill stalled in the Senate after two cancelled markup sessions and prolonged stablecoin negotiations.

The bill aims to clarify jurisdictional lines between regulatory agencies, including the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), in overseeing digital assets. Its passage could provide much-needed regulatory clarity for the crypto industry, which has long advocated for clear rules to foster innovation and investment.

What’s Next?

With the markup session scheduled for May 14, the Senate Banking Committee will determine whether the bill advances to the full Senate floor. The outcome hinges on resolving disputes over stablecoin yields, ethics provisions, and developer protections. Industry leaders and lawmakers alike are closely watching the developments, as the bill’s passage could mark a turning point for crypto regulation in the United States.