- After exchanging mutually exclusive demands, it appears that representatives of the banking and cryptocurrency industries have failed to reach an agreement.
- It is reported that the draft law CLARITY, which will be considered by the US Senate on May 14, does not reflect the interests of the crypto industry.
Ahead of a hearing on the sweeping digital asset bill on Thursday, May 14, lawmakers introduced more than 100 amendments.
These include changes aimed at strengthening sanctions powers, banning central bank digital currencies, and changing the language around stablecoin rewards.
Democratic Senator Jack Reed introduced nearly 20 amendments, including one to change the language regarding stablecoin rewards. This issue became a major obstacle to the bill’s progress in the Senate. Following negotiations between lawmakers, the White House, and the banking and crypto industries, Senators Angela Alsobrooks and Thom Tillis introduced a bill that would prohibit certain firms from paying any interest simply for holding stablecoins, in order to address the banking industry’s concerns about potential deposit outflows.
В the latest version of the bill, published by the Senate Banking Committee, included this wording. On Thursday, the committee plans to hold a discussion and a vote on the CLARITY bill on the structure of the cryptocurrency market, which comprehensively regulates the industry at the federal level.
Regarding stablecoin rewards, Senator Reed requested that the language stating that rewards are “economically or functionally equivalent to the payment of interest or income on an interest-bearing bank deposit” be “substantially analogous to how banking organizations pay interest or income.”
Other amendments include the re-establishment of the National Cryptocurrency Enforcement Task Force, which the Justice Department created in 2021. It worked on the high-profile Tornado Cash and Mango Markets cases but was disbanded in 2025.
Interestingly, the House version of the Cryptocurrency Market Structure Bill bans the use of central bank digital currencies (CBDC) is missing. This issue has delayed the bill, as some Republicans have insisted on including provisions to prevent the release CBDC.
An anonymous source in the crypto industry said the amendments overall demonstrate “a fundamental misunderstanding of the technology and a desire to extend existing rules to new technology”:
It’s unfortunate, and I hope elected officials take the time to study these technologies and develop American regulations that allow the technologies to be created here rather than abroad.
After the Senate Banking Committee votes on the bill, it will need to be reconciled with the Senate Agriculture Committee’s version before it passes the House of Representatives. The final version will then go to President Trump for his signature.
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