CLARITY Act faces 100+ amendments as bankers send 8,000 demand letters against stablecoin rewards

The CLARITY Act is facing over 100 proposed amendments as it heads into markup, highlighting ongoing disagreements, particularly concerning stablecoin rewards. Banks are lobbying intensely, reportedly sending 8,000 demand letters, to prevent stablecoin rewards that resemble interest on bank deposits, fearing they will pull deposits away from insured institutions. A proposed amendment by Sens. Reed and Smith aims to tighten standards for such rewards. Meanwhile, Sen. Elizabeth Warren has introduced over 40 amendments, including one to prevent the Federal Reserve from granting master accounts to crypto companies, a move opposed by banking groups concerned about systemic risks. Other Democratic amendments address decentralized finance (DeFi) provisions, seeking clearer definitions and compliance obligations for protocols, and prohibit cryptocurrencies from being used as legal tender. The crypto industry is urging senators to pass the bill with minimal weakening amendments, framing the banking push as protectionism and emphasizing the need for a clear regulatory framework to foster innovation in the U.S.

(Source：CryptoSlate)