Image Credit: Pexels
Senators have filed more than 100 amendments to the CLARITY Act ahead of the Senate Banking Committee’s May 14 markup, as lawmakers prepare to debate unresolved disputes over stablecoins, ethics rules and DeFi oversight.
The committee released a revised 309-page version of the crypto market structure bill this week before the scheduled markup.
100+ Amendments Target May 14 Markup
The amendments cover stablecoin rewards, software developer protections, ethics rules, sanctions enforcement, anti-money laundering requirements and banking access for digital asset firms.
The volume of proposed changes shows the bill is moving toward committee action, but also that major policy fights remain unresolved before any Senate floor vote.
The CLARITY Act would create a broader U.S. market structure framework for digital assets and clarify when tokens fall under the Securities and Exchange Commission or the Commodity Futures Trading Commission.
Reed-Smith Plan Tightens Stablecoin Rewards
Stablecoin rewards remain one of the most contested parts of the bill. The current draft would ban interest-like payments on idle stablecoin balances while allowing rewards tied to transaction activity. The SEC, CFTC and Treasury would be required to write joint rules to implement the provision.
Sens. Jack Reed and Tina Smith have reportedly proposed an amendment that would tighten the restriction by using a broader “substantially similar” standard for banned yield products.
Banking groups have pushed for tougher language, arguing that stablecoin rewards could pull deposits away from traditional lenders. Crypto firms argue that overly broad restrictions could block ordinary user incentives and payment-related rewards.
Ethics and Developer Protections Remain Unresolved
Ethics provisions are also back in focus. Lawmakers have been debating whether senior government officials and their families should face restrictions on owning, promoting or profiting from crypto while federal digital asset rules are being written.
Software developer liability is another major amendment area. Crypto advocates have pushed for protections for open-source developers who write code but do not control user funds or operate money transmission businesses.
The draft also expands AML obligations. Digital commodity exchanges, brokers and dealers would be treated as financial institutions under the Bank Secrecy Act, bringing them under customer identification, due diligence and suspicious activity reporting requirements.
309-Page CLARITY Draft Faces Senate Test
The May 14 markup gives lawmakers their first major public test of the revised 309-page bill. Reports said Sens. Thom Tillis and Angela Alsobrooks have led bipartisan work on the measure, but the legislation still has to be reconciled with separate work from the Agriculture Committee.
The amendment volume shows the CLARITY Act is advancing, but stablecoin rewards, ethics, DeFi oversight and developer liability could still reshape the bill before it reaches the Senate floor.
