The Senate Banking Committee opens the CLARITY Act markup Thursday with 130+ amendments, 44 from Warren alone, as banks and crypto firms fight over stablecoin yield.
Posted May 14, 2026 at 6:03 am EST.
The U.S. Senate Banking Committee opens its markup of the Digital Asset Market CLARITY Act at 10:30 a.m. ET Thursday with more than 130 proposed amendments filed by committee members, the most consequential test yet for a bill that would establish federal market structure rules for crypto.
The amendment pile reflects the political reality of a deeply partisan committee. Senator Elizabeth Warren (D-MA) filed 44 amendments alone, including one to “prohibit political corruption in banking applications and presidential bank ownership,” language widely read as targeting the Trump family’s World Liberty Financial venture and its banking charter ambitions.
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Other Warren amendments range from blocking the Fed from issuing master accounts to certain crypto-engaged depository institutions to a request for bank supervisory records involving Jeffrey Epstein and his co-conspirators.
Senator Jack Reed (D-RI) filed roughly 18 amendments, including one to tighten the Tillis-Alsobrooks stablecoin yield compromise embedded in the bill. The compromise bans passive yield on stablecoin balances but permits activity-based rewards tied to payments and transfers. Reed’s amendment would replace “economically or functionally equivalent to the payment of interest” with “substantially similar to the manner in which banking organizations pay interest,” closer to language the banking lobby has demanded.
Senator Catherine Cortez Masto (D-NV) filed an amendment to create legal protections for software developers who do not hold or control customer funds.
The bank lobby has gone scorched earth. American Bankers Association members sent more than 8,000 letters to Senate offices urging tighter stablecoin yield restrictions in the days leading up to the markup. The crypto industry has pushed back hard, with more than 100 firms signing a joint letter backing the compromise. Coinbase CEO Brian Armstrong held a live X event Monday, saying parties got “the must-haves.”
The procedural reality is that most amendments will fail. The committee splits 13 Republicans to 11 Democrats, and Chairman Tim Scott (R-SC) needs all 13 GOP votes to advance the bill.
Senator John Kennedy (R-LA) remains uncommitted, with Punchbowl News reporting his hesitation has nothing to do with crypto policy. The ethics provision Democrats, including Senator Kirsten Gillibrand, have demanded falls outside the Banking Committee’s jurisdiction and would have to be added later.
The White House is targeting a July 4 signing. Polymarket odds for the bill becoming law in 2026 sat at roughly 62% heading into Thursday, holding steady after surging on the early-May compromise.
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