The Senate Banking Committee will mark up the CLARITY Act on Thursday, bringing a revamped 309-page bill to the floor after a failed attempt in January. Coinbase CEO Brian Armstrong says the latest version is a compromise between the crypto industry and bank lobbyists. Ripple CEO Brad Garlinghouse also supports the bill, arguing crypto should have the same rules and protections as every other asset class. But the banking trade groups aren't sold — they're pushing back hard on a provision that lets stablecoin issuers pay rewards tied to account activity.
The stablecoin rewards fight
The provision in question allows stablecoin rewards only when there is 'material activity' on the account. Banking trade groups oppose it, saying it gives crypto firms too much flexibility and could pull deposits away from insured banks. Critics within the industry say the dispute is far from settled, and the banking pushback could still derail the bill. Armstrong believes the legislation would make the financial system more efficient, streamline services, and reduce friction — but he's not pretending the bank lobby is going quietly.
Where the bill stands
The updated CLARITY Act draft is 309 pages, up from the 278-page version introduced in January. That earlier markup session drew 137 amendments and was cancelled after Armstrong and Coinbase withdrew support. This time around, Senator Elizabeth Warren is preparing extensive amendments — over 100 are expected in total, with more than 40 coming from Warren herself. That's a signal the progressive wing isn't done fighting. The committee will have to work through those amendments Thursday before any vote.
Thursday's markup will be the test. If the committee can get through the amendment pile and pass the bill out of committee, it heads to the full Senate. With Warren bringing dozens of changes and banking groups still lobbying hard, the path forward is anything but clear. The one thing everyone agrees on: this markup won't be quick.
