Crypto Law Stalls Over Stablecoin Rewards and Ethics

The Digital Asset Market Clarity Act—known as Clarity—has reached a pivotal moment. The bill first cleared the House, but now it is stalled in the Senate Banking Committee where heated debates over stablecoin rewards are unfolding.

A Flood of Amendments

• 130+ amendments have been submitted ahead of the upcoming markup.
• Senator Elizabeth Warren alone has proposed 44 changes, ranging from minor tweaks to significant pushbacks against the bill’s core supporters.

Who Opposes It?

• Banks fear stablecoins could erode traditional deposits.
• Advocacy groups warn of broader ethical and security risks tied to expanding crypto.

Voices from the Crypto Community

Steve Yelderman of Etherealize is optimistic:

“I expect Clarity to pass thanks to bipartisan progress and White House backing.”
Yet he cautions that Washington can still surprise everyone.

A Rough Path So Far

• Earlier this year, the bill almost advanced until Coinbase withdrew support after a proposed ban on stablecoin rewards.
• Senators Thom Tillis and Angela Alsobrooks brokered a compromise on yield, but banking lobbyists argue the deal favors stablecoin firms too heavily.
• The American Bankers Association has sent over 8,000 letters to Senate offices criticizing the arrangement.

What to Expect at Tomorrow’s Markup

• Chairman Tim Scott is likely to emphasize protecting everyday Americans and national security while encouraging U.S. crypto innovation.
• Democrats are sharpening their focus on ethics, especially the Trump family’s extensive involvement in crypto markets.
• A Senate aide notes that Democrats fear the bill will miss essential ethics provisions unless they are added now.

Both parties have met multiple times this week to discuss how best to incorporate these concerns into Clarity.