CLARITY Act Faces 100+ Amendments Before Markup

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Senators have filed more than 100 amendments to the CLARITY Act ahead of the Senate Banking Committee’s May 14 markup, reopening fights over stablecoin rewards, ethics rules, DeFi oversight and software developer protections.

The committee released a revised 309-page draft of the crypto market structure bill late Monday before a scheduled vote on whether to advance it. The legislation would clarify when digital assets fall under the Securities and Exchange Commission and when they are overseen by the Commodity Futures Trading Commission.

100+ Amendments Target May 14 Committee Vote

The amendment list shows how many disputes remain before the bill can move toward the Senate floor.

The proposals cover stablecoin rewards, software developer protections, sanctions enforcement, anti-money laundering rules, ethics provisions and crypto firms’ access to banking services. The markup will be the committee’s first major public test of the revised draft. It will also show whether lawmakers can keep the bill moving despite several unresolved policy fights.

Reed-Smith Plan Would Tighten Stablecoin Yield Ban

Stablecoin rewards remain one of the most sensitive issues. The current draft would ban interest-like payments on idle stablecoin balances while still allowing rewards tied to transaction activity, such as payments. The SEC, CFTC and Treasury would be required to write joint rules to implement that provision.

Sens. Jack Reed and Tina Smith have reportedly proposed an amendment that would tighten the restriction by using a broader “substantially similar” test for banned yield products. Banking groups argue that stablecoin rewards could pull deposits away from regulated lenders. Crypto firms argue that overly broad restrictions could block ordinary user incentives and payment-related rewards.

Van Hollen Ethics Plan Targets Officials and Families

Ethics language is also back in focus. Sen. Chris Van Hollen has reportedly proposed an amendment that would bar the president, vice president, senior executive branch officials, members of Congress and their families from owning, promoting or being affiliated with crypto.

The proposal reflects a wider fight over whether crypto legislation should include conflict-of-interest limits for senior public officials while Congress is writing digital asset rules. The issue has become more politically sensitive as lawmakers debate rules for an industry with growing political ties.

Developer and DeFi Rules Remain Unresolved

Software developer protections are another major amendment area. Sen. Catherine Cortez Masto has reportedly proposed a safe harbor from criminal liability for developers who do not register as money transmitters. Crypto groups have pushed for those protections after enforcement actions raised concerns over liability for open-source code.

The draft would also bring digital commodity exchanges, brokers and dealers under Bank Secrecy Act requirements. DeFi platforms could face similar obligations if they retain special permissions, user-blocking powers or privileged control. Thursday’s markup will show whether lawmakers can advance the CLARITY Act despite fights over stablecoin rewards, ethics, DeFi oversight and developer liability.