The Senate Banking Committee has received more than 100 proposed amendments to its crypto market structure bill ahead of Thursday’s markup vote, with lawmakers reopening disputes over stablecoin rewards, ethics restrictions, and protections for software developers. According to a list obtained by POLITICO , Democratic senators filed dozens of amendments tied to stablecoin regulation, anti-corruption provisions, sanctions enforcement, and crypto oversight, while Republican lawmakers mostly proposed narrower revisions to the legislation. Set for committee markup later this week, the bill would establish a federal framework dividing oversight of digital assets between US market regulators. The Senate effort follows the House’s passage of the CLARITY Act in July and comes months after a January markup collapsed when Coinbase withdrew support over stablecoin reward restrictions. At the center of the latest amendment fight is language governing stablecoin yield products. A revised version of the bill released Monday prohibits third-party platforms such as crypto exchanges from offering stablecoin rewards in a manner considered “functionally equivalent” to interest paid on bank deposits. Democratic Senators Jack Reed and Tina Smith have proposed replacing the bill’s “equivalence” standard with a “substantially similar” test intended to tighten those restrictions, according to the POLITICO list. Banking groups have continued pushing senators to strengthen the language. In a letter circulated over the weekend, American Banker Rob Nichols warned that the current draft could move deposits away from traditional banks into stablecoins, potentially weakening lending activity and financial stability. Ethics and developer protections draw fresh scrutiny A separate amendment introduced by Democratic Senator Chris Van Hollen would prohibit the president, vice president, members of Congress, senior federal officials, and their families from owning, promoting, or maintaining ties to crypto businesses. Ethical language has remained one of the biggest unresolved disputes surrounding the bill. The latest committee draft does not include restrictions preventing federal officials from profiting through crypto ventures while influencing legislation tied to the industry. Earlier this week, a spokesperson for Angela Alsobrooks said negotiations with Republicans were continuing in “good faith,” though the spokesperson added that Democratic support would depend on reaching an agreement over conflict of interest provisions. During Consensus Miami 2026, Kirsten Gillibrand said Democrats would not support the legislation unless ethics safeguards were added. Meanwhile, White House crypto adviser Patrick Witt said the administration backs ethics rules that apply uniformly across government positions rather than targeting specific officeholders. Criticism from Democrats intensified after the updated text became public. In a statement released Monday night, Senate Banking Committee ranking member Elizabeth Warren argued the legislation could “turbocharge Donald Trump’s crypto corruption” because it lacks restrictions preventing federal officials from benefiting financially from crypto ventures. Elsewhere in the amendment package, Democratic Senator Catherine Cortez Masto proposed a safe harbor provision shielding software developers from criminal liability if they are not registered as money transmitters. The measure aligns with provisions from the Blockchain Regulatory Certainty Act that crypto advocacy groups have backed for months. The latest Senate draft already contains language clarifying that developers and infrastructure providers who do not control customer funds should not be treated as money transmitters under federal law. After negotiations earlier this year, Republican Senators Chuck Grassley and Cynthia Lummis reportedly reached an agreement addressing concerns from prosecutors over financial crime enforcement involving digital assets. Additional amendments cover sanctions enforcement, institutional participation in crypto markets, and a proposal from Democratic Senator Andy Kim to restore the Justice Department’s National Cryptocurrency Enforcement Team, which the department dismantled in April last year. Although Republicans hold the majority in both the Banking Committee and the Senate, the legislation still faces hurdles before reaching the Senate floor. Senator Thom Tillis has already warned he would not support the bill without changes to certain provisions. Once the committee process concludes, Senate Republicans will still need Democratic backing to secure the three-fifths majority required to overcome procedural obstacles and move the legislation toward final passage. The post Senate crypto bill receives over 100 amendments ahead of key markup vote appeared first on Invezz
