Fortune reveals the U.S. crypto regulatory milestone — the CLARITY Act — enters Senate Banking Committee markup today, but it is far from a straightforward pro-crypto victory. Behind the bill lie three political bombs: whether stablecoin rewards equal deposit competition, whether market structure legislation opens doors for industry expansion, and ethical red lines around Trump family crypto businesses. The committee has received over 130 proposed amendments, while the banking industry has unleashed 8,000 letters opposing stablecoin yield provisions.
130 Amendment Bombshell: Warren Files 44 Alone
According to a copy of proposed amendments reviewed by Fortune, Senate Banking Committee members have submitted more than 130 proposed amendments ahead of Thursday's markup. Senator Elizabeth Warren alone filed 44 of them. Some amendments are minor, while others aim to advance the positions of bill opponents — including banking interests worried that stablecoins will erode deposit bases, and those concerned about ethical and national security risks tied to crypto expansion.
“I think it will pass, based on the progress made in both chambers of Congress and the White House's support for this bill,” Steve Yelderman, general counsel for Ethereum-focused advocacy group Etherealize, told Fortune. “That said, this is Washington — anything can happen.”
Banking Industry Pushback: 8,000 Letters Against Stablecoin Yields
Earlier this year, the CLARITY Act nearly reached Senate Banking Committee markup, but Coinbase withdrew support over a proposed stablecoin reward ban. Senators Thom Tillis and Angela Alsobrooks later reached a compromise on stablecoin yields, but banking lobbyists now complain the deal is too favorable to stablecoin firms. Reports indicate members of the American Bankers Association have sent more than 8,000 letters to Senate offices criticizing the yield compromise.
A Senate aide told Fortune that during Thursday's markup, Banking Committee Chairman Tim Scott is expected to emphasize protecting “everyday people,” safeguarding national security, and keeping crypto innovation in the U.S. as key goals of the CLARITY Act. Another aide said Democrats plan to focus on ethical issues arising from President Trump's many crypto entanglements. “Democrats are increasingly concerned that if ethical provisions are not included in the committee-marked version, they may never be added later,” the aide said. He added that Democrats are focused on addressing Trump family crypto profits within market structure legislation. This week, Republicans and Democrats have met multiple times to discuss adding ethical clauses to the CLARITY Act.
Trump Family Crypto Business: Ethical Time Bomb
For now, the bill still has a decent chance of reaching a full Senate vote. Senator John Kennedy of Louisiana, a key Republican who previously held reservations about the CLARITY Act, told Semafor he plans to support it. But with the summer recess and midterm elections approaching, the margin for error is slim. Traders on Polymarket have grown less optimistic this week about the bill's prospects — the prediction market now sees a 60% chance of passage this year.