Over 100 Proposed Changes Submitted by Senators for Upcoming Crypto Legislation Review
More than 100 amendments have been submitted by members of the Senate Banking Committee for an important cryptocurrency bill, with a disclosed document revealing topics spanning from stablecoins to developer protections and ethical standards.
US Senate Banking Committee members have submitted in excess of 100 amendments to a cryptocurrency market structure bill scheduled for markup proceedings on Thursday, with the majority of proposed modifications addressing stablecoins, software developers and ethics-related matters.
Based on a document secured by POLITICO, Democratic members of the committee have put forward numerous modifications, whereas Republican senators are pursuing minor tweaks to the legislation.
The precise nature of each individual amendment remains uncertain, though several address topics the committee has been attempting to resolve for multiple months, including yield on stablecoins, safeguards for crypto software developers and ethical guidelines.
The document provides a glimpse into the topics the committee is expected to deliberate during Thursday's markup session as members work to move the legislation forward to the Senate floor. The Senate Banking Committee postponed a prior markup session indefinitely in January following major crypto lobbyist Coinbase's decision to withdraw its backing for the bill.
The proposed legislation seeks to partition oversight responsibilities for crypto among US market regulators, with the House approving its own version in July known as the CLARITY Act. Representatives of the crypto industry and banking sector, alongside legislators, have clashed over stablecoin-related provisions and questions regarding whether public officials should face restrictions on cryptocurrency involvement.
Additional limitations on stablecoin yield offerings have emerged as the bill's most divisive element, with representatives from the banking and crypto industries unable to come to terms after extended negotiations spanning several months.
A draft of the bill made public on Monday prohibited third-party platforms like crypto exchanges from providing yield on stablecoins in a manner that is "functionally equivalent" to the payment of interest on an interest-bearing bank deposit.
The document reveals Democratic Senators Jack Reed and Tina Smith are presenting an amendment designed to "strengthen [the] prohibition on interest/yield by using a 'substantially similar' test rather than an 'equivalence' test."
A separate proposed amendment from Democratic Senator Chris Van Hollen introduces an ethics provision that has garnered support from Democrats and certain Republicans, which would prohibit the president, vice president, senior officials, members of Congress and their families from owning, promoting or being affiliated with crypto.
Democratic Senator Catherine Cortez Masto is also planning an amendment aimed at protecting software developers by "creating a safe harbor from criminal liability for not registering as a money transmitter," a measure that has received backing from numerous crypto organizations.
Additional amendments address sanctions, financial institutions participating in crypto, and one from Democratic Senator Andy Kim that aims to reestablish the Justice Department's National Cryptocurrency Enforcement Team, which the department dismantled in April last year.
Republicans hold a majority on the Banking Committee and in the Senate, but some party members, such as Senator Thom Tillis, have stated they won't support the bill without certain provisions.
Republicans also control the Senate, but will need some Democrats onside to pass it with a three-fifths majority to end any potential debate on the bill.