The Senate Banking Committee markup on the Clarity Act faces over 100 amendments that could ban yield-bearing stablecoins, threatening a $160 billion market and the revenue models of Coinbase and Circle.
The U.S. Senate Banking Committee will mark up the Clarity Act on Thursday. More than 100 amendments have been filed, targeting stablecoin reserves, ethics rules, and decentralized finance oversight. The markup is not a final vote. It is the committee-level process that will determine whether the bill advances intact or emerges with rules that could delay a US regulatory framework until 2026.
The flood of proposed changes – submitted by both Democratic and Republican members – includes several amendments that would prohibit stablecoin issuers from paying interest. This directly threatens the rewards programme that Coinbase (COIN) has explored. Banking lobbyists have filed thousands of comment letters arguing that any form of interest on stablecoins would undermine traditional deposits. The internal AlphaScala note 100+ Amendments, 8,000 Bank Letters Threaten Stablecoin Rewards details how that lobbying effort shaped the amendment blitz.
Other amendments address stablecoin reserves and redemption rights, defining qualifying reserve assets and redemption timelines. A separate set of provisions could require decentralized protocols to register as financial entities, a point of friction with the industry.
Stablecoins represent a $160 billion market dominated by Tether (USDT) and Circle's USDC. The Clarity Act's original draft aimed to create a federal charter for stablecoin issuers, a step that could bring USDC and other regulated coins into the banking perimeter. The latest amendments risk stripping out the rewards mechanism that Coinbase and Circle have pushed for, a feature they argue is essential to compete with offshore, unregulated issuers. If the committee adopts a yield ban, US-regulated stablecoins would offer fewer incentives to holders, potentially ceding market share to Tether, which is not subject to US law.
Coinbase holds a 50% stake in the Centre Consortium that governs USDC, and its exchange generates fee income from stablecoin trading pairs. Circle has filed confidentially for an initial public offering. Any delay in the Clarity Act – or a version that imposes a strict no-interest rule – shrinks the revenue opportunity for both companies. The markup on Thursday is, therefore, a binary event for the names most leveraged to US regulatory clarity.
Coinbase CEO Brian Armstrong has publicly pressed lawmakers to preserve the ability to offer rewards on stablecoins, warning that a ban would push innovation offshore. The earlier AlphaScala coverage of his comments provides the full context.
The committee markup is only the first legislative gate. If the bill advances without crippling amendments, the full Senate could take up the measure later this spring. The House is working on a parallel stablecoin bill, and the White House has signaled general support for stablecoin regulation. A heavily amended bill that resets negotiations would extend the timeline into 2026, keeping institutional capital on the sidelines. The vote on Thursday – and the specific amendments adopted – will set the tone for crypto market structure for the next 12 months.
Drafted by the AlphaScala research model and grounded in primary market data – live prices, fundamentals, SEC filings, hedge-fund holdings, and insider activity. Each story is checked against AlphaScala publishing rules before release. Educational coverage, not personalized advice.