Senate encryption bill enters critical phase, with a surge in amendments and intensifying lobbying efforts.

With the Senate Banking Committee hearing approaching, US crypto legislation has entered its final sprint. The bill has now seen over 70 amendments, with disagreements rapidly escalating over stablecoin yields and DeFi regulation, drawing involvement from the crypto industry, banking lobbying groups, and consumer protection organizations. The Senate will vote on the amendments on Thursday. The bill aims to clarify the regulatory boundaries between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), define the nature of digital assets, and introduce new disclosure requirements. Committee Chairman Tim Scott released the 278-page bill text on Monday, followed by numerous amendments from both parties. Some proposals involve granting the Treasury Department the power to sanction "distributed application layers," while others focus on stablecoin yields, which have become the biggest point of contention. Coinbase CEO Brian Armstrong stated that his Stand With Crypto group will score Thursday's amendment vote, saying it will test whether senators are "on the side of bank profits or on the side of consumer rewards." Industry insiders point out that while the bill still has momentum, its final direction remains highly uncertain.