In brief
- Lawmakers submitted a flurry of eleventh-hour amendments to the Clarity Act before Thursday's critical committee vote.
- The suggested revisions address stablecoin incentives, Trump-linked crypto projects, decentralized finance oversight, and regulations against money laundering.
- Several amendments stray beyond the crypto realm entirely, with proposals covering housing policy, credit card charges, and the disclosure of Jeffrey Epstein-related documents.
With under 24 hours remaining before the Senate Banking Committee's pivotal vote on the Clarity Act, senators have put forward dozens of amendments to this sweeping crypto legislation.
During tomorrow's session, legislators will cast votes on incorporating each amendment to the wide-ranging bill—which aims to formally legalize most cryptocurrency activities in the U.S.—before finally determining whether to advance it to the full Senate.
Below is an overview of these amendments, as examined by Decrypt. The last-minute additions to the Clarity Act cover not just familiar debates around stablecoin returns and DeFi oversight—but also credit card fees, housing matters, and even Jeffrey Epstein.
Stablecoin returns and Trump-linked projects
Several of tomorrow's proposed amendments address well-known issues, such as incentives offered on stablecoin holdings and efforts to restrict the profitable crypto-connected endeavors of President Donald Trump and his family.
One amendment vote certain to draw significant attention tomorrow is from Sen. Jack Reed (D-RI), who has replicated the precise wording on stablecoin returns demanded by the banking sector. This amendment will compel every Senate Banking Committee member to vote on whether to include it in the Clarity Act, effectively forcing them to take a stance.
For months, the banking sector and the crypto advocacy groups have clashed over the future of programs that provide returns on stablecoins, digital currencies pegged to the U.S. dollar. The existing Clarity Act wording on this issue was endorsed by the crypto industry but has faced strong criticism from traditional banks.
On the topic of crypto's wider economic impact, Sen. Tina Smith (D-MN) proposed an amendment that would ban the U.S. government from ever offering financial support to crypto firms to avert "collapse or insolvency."
A separate amendment from Sen. Elizabeth Warren (D-MA) would block the U.S. government from greenlighting banking applications for entities directly connected to the president, vice president, congressional members, and their close relatives. It would also bar such individuals from owning or controlling banks.
This language is almost certainly aimed at the Trump family's crypto firm, World Liberty Financial, which sought a banking charter from the Trump administration this year. Democrats like Warren have criticized the situation as evidence of the president's alleged conflicts of interest.
Along similar lines, Sen. Andy Kim (D-NJ) has put forward an amendment calling for the revival of an inter-agency National Cryptocurrency Enforcement Team, which would, among other duties, probe crypto projects with direct links to the president and their close family members.
Broader provisions concerning the president's crypto involvement are currently being discussed by leaders from both parties. Key pro-crypto Democrats have stated they will not
Senate Majority Leader John Thune has signaled he intends to push the Clarity Act forward to a full Senate vote by tomorrow, unless concrete commitments on specific provisions are secured before the hearing concludes.
DeFi restrictions, sanctions, and privacy
Among the numerous amendments scheduled for votes tomorrow, a significant portion addresses contentious topics like overseeing decentralized finance (DeFi), safeguarding user privacy, and enforcing measures against illegal cryptocurrency activities.
Senator Andy Kim, who supported advancing the GENIUS Act—centered on stablecoins—through committee last spring, has proposed multiple changes to the Clarity Act aimed at strengthening national security within the crypto sector.
One proposed change would mandate that companies earning substantial income from DeFi services implement robust anti-money laundering and sanctions compliance systems. A separate proposal would explicitly empower the U.S. government to impose sanctions on any transactions involving stablecoins pegged to the U.S. dollar.
Elizabeth Warren has put forward another amendment enabling the U.S. government to block crypto platforms that process even a single illegal transaction. Additionally, Jack Reed has introduced a measure likely to draw strong opposition from the crypto industry: the complete removal of the Blockchain Regulatory Certainty Act (BRCA). This is a crucial part of the Clarity Act that currently shields DeFi from most new regulations and broadly protects crypto software developers from criminal liability.
Groups like the DeFi Education Fund have already started publicly opposing certain amendments they wish to see removed—particularly those aimed at reducing protections for developers and decentralized finance protocols.
Senate Republicans have also submitted amendments concerning illicit crypto activity and privacy. Bill Hagerty (R-TN) and Dave McCormick (R-PA) proposed language to establish a permanent Digital Asset Cyber Innovation Center within the Treasury Department, focused on combating crypto-based threats from nations such as North Korea and Iran.
Hagerty has also introduced an amendment to permanently prohibit the U.S. government from launching its own central bank digital currency (CBDC). Currently, a five-year ban on such a currency is included in a major housing bill that remains stalled in the House.
Non-crypto amendments
Beyond crypto-related proposals, there are numerous amendments entirely unrelated to digital assets.
One, introduced by Bill Hagerty, would reduce regulatory hurdles for housing development in designated regions. Another, from Elizabeth Warren, would compel federal banking regulators to disclose all information they hold regarding Jeffrey Epstein and his associates within 90 days of the Clarity Act becoming law.
A separate proposal from Warren—who has filed over 40 amendments to the bill—would limit credit card interest rates to 10% for one year. Meanwhile, Senator Katie Britt (R-AL) has proposed increasing the interchange fees that merchants and retailers pay to banks, adjusting them for inflation. This policy, previously suggested by Britt, would particularly benefit community banks, which feel especially vulnerable to the competitive threat posed by stablecoin yields.
“If you’ve upset community banks over stablecoin yields, this is a nice little consolation prize,” a Washington insider told Decrypt.
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