Clarity Act Faces Key Senate Vote as Lawmakers File Over 100 Crypto Amendments

The U.S. Senate Banking Committee is set to vote on the Clarity Act this Thursday after lawmakers submitted more than 100 amendments to the proposed crypto market structure bill. The legislation is seen as a major step toward creating clear federal rules for digital assets, stablecoins and decentralized finance (DeFi).

Several senators have proposed changes covering stablecoins, crypto ethics, sanctions powers and central bank digital currencies (CBDCs). Senator Jack Reed filed nearly 20 amendments, including one focused on stablecoin rewards. He wants to revise language that currently blocks firms from offering interest-like rewards on stablecoin holdings, an issue that has become a major debate between banks and crypto companies.

Stablecoin Rewards and CBDC Ban Become Key Debate

The latest version of the bill includes restrictions on stablecoin rewards after negotiations between lawmakers, the White House, banks and crypto firms. Senators Angela Alsobrooks and Thom Tillis previously supported language designed to stop certain firms from paying returns simply for holding stablecoins, mainly to ease concerns that banks could lose deposits.

Meanwhile, Senator Bill Hagerty proposed an amendment to block the Federal Reserve from launching a U.S. CBDC. Although the Fed has said it would not issue a digital dollar without Congress approval, many Republicans continue pushing for a legal ban.

DeFi Rules and Crypto Enforcement Under Review

Decentralized finance has also become a major talking point. Senator Mark Warner proposed a section called “Responsible Innovation in Decentralized Finance,” which would direct the Treasury Department to clarify how DeFi platforms controlled by individuals or coordinated groups should follow securities laws.

Senator Andy Kim proposed bringing back the National Cryptocurrency Enforcement Team, a Justice Department group created in 2021 that handled major crypto crime cases before being disbanded in 2025.

At the same time, Senator Reed proposed removing the Blockchain Regulatory Certainty Act, a provision supported by DeFi advocates that would protect non-custodial blockchain developers from being treated as money transmitters.

Crypto Ethics Rules Gain Momentum

Ethics rules are also drawing strong attention. Senator Chris Van Hollen proposed banning the president, vice president and senior federal officials, along with family members, from owning or promoting digital assets.

The debate comes as concerns grow over political involvement in crypto businesses. Senator Kirsten Gillibrand recently said support for the bill could depend on stronger ethics protections.

If approved by the Senate Banking Committee, the Clarity Act will move through additional negotiations before eventually heading for a final vote and possible presidential approval.