U.S. senators have proposed more than 75 amendments ahead of this week’s Senate Banking Committee markup hearing on the long-awaited crypto market structure legislation, underscoring how contested key sections of the bill remain, according to a document obtained by CoinDesk.The amendments — filed by lawmakers from both parties — span more than 100 distinct policy items, ranging from stablecoin yield restrictions and DeFi definitions to ethics provisions, software developer protections, and government corruption safeguards.High-stakes markup hearing set for ThursdayThe Senate Banking Committee is scheduled to hold a markup hearing on Thursday, during which lawmakers will debate, amend, and vote on whether to advance the underlying bill. A parallel markup by the Senate Agriculture Committee has been rescheduled for late January.The base text of the Banking Committee’s version of the bill was released just before midnight on Monday, prompting a rapid review process by lawmakers, staffers, and industry advocates ahead of the amendment deadline.As is typical in congressional markups, most proposed amendments are unlikely to survive, either failing outright or being withdrawn as part of last-minute negotiations.Stablecoin yield emerges as a central fault lineOne of the most heavily targeted sections of the bill concerns stablecoin rewards and yield, which has drawn scrutiny from both Democrats and Republicans.Among the most notable proposals:Senators Thom Tillis (R-NC) and Angela Alsobrooks (D-MD) jointly submitted amendments aimed at revising the bill’s stablecoin yield language.One amendment would remove the word “solely” from a clause that currently states digital asset service providers may not pay interest or yield “solely in connection with the holding of a payment stablecoin.”Another would impose enhanced reporting and risk disclosure requirements for any yield-bearing arrangements.Several additional amendments go further, proposing to eliminate stablecoin yield entirely, reflecting lingering concerns over consumer protection, financial stability, and regulatory arbitrage.Ethics and political conflict remain unresolvedDemocratic lawmakers have continued to push for ethics-related provisions, particularly concerning President Donald Trump’s personal and family ties to crypto ventures.While earlier negotiations suggested that Senator Ruben Gallego (D-AZ) was leading talks on ethics language, none of the publicly described amendments attributed to him directly address the issue.Instead:Senator Chris Van Hollen (D-MD) proposed an anti-corruption amendment, alongside an anti-touting requirement that would mandate disclosure of financial interests related to crypto.A Democratic aide told CoinDesk that ethics remain a key sticking point, with negotiations ongoing and no final compromise yet reached.Regulatory balance and agency governance in focusOther amendments address broader regulatory structure concerns:Senator Lisa Blunt Rochester (D-DE) introduced a proposal on quorum requirements, reflecting Democratic frustration that the SEC and CFTC are currently led solely by Republican commissioners, contrary to the agencies’ intended bipartisan design.Additional amendments seek to clarify definitions around digital asset mixers, software development, and DeFi protocol liability, areas that have drawn intense industry lobbying.Broad bipartisan participationAccording to the amendment list, Democratic senators filing proposals include:Ruben GallegoAngela AlsobrooksLisa Blunt RochesterJack ReedAndy KimRaphael WarnockCatherine Cortez MastoElizabeth WarrenChris Van HollenRepublican sponsors include:Thom TillisMike RoundsBill HagertyPete RickettsKatie BrittJohn KennedyCynthia LummisKevin CramerTim ScottWhat happens nextWhile the sheer volume of amendments highlights unresolved policy tensions, most are expected to be pared back or abandoned during the markup process.What remains uncertain is whether lawmakers can strike a bipartisan compromise on the most sensitive issues — particularly stablecoin yield, ethics, and DeFi treatment — before the bill advances to a full Senate vote.Failure to resolve these issues could slow or derail progress on what would otherwise be the most comprehensive U.S. crypto market structure framework to date, with significant implications for institutional adoption and regulatory certainty.
Catherine
