CryptoSlate
The Senate's Sept. 15 cloture vote on the CLARITY Act failed 49-50, leaving supporters 11 votes short of the 60 needed to advance the bill. Four Republicans who voted yes, John Cornyn, John Curtis, Cindy Hyde-Smith, and Lisa Murkowski, also support Sen. Jerry Moran's amendment for tougher restrictions on stablecoin yield.
Why it matters
The amendment would replace CLARITY's current test for rewards that are "economically or functionally equivalent to the payment of interest" with broader language covering rewards substantially similar to how banks pay interest or yield. It would also remove the word "solely" from one provision and eliminate a subsection allowing issuers to calculate certain rewards using account balances, holding duration, or customer tenure.
Banking groups argue the existing bill reacts too late by allowing regulators to intervene if Treasury finds harm to community banks within 18 months of enactment. The American Bankers Association and other groups say deposits could already have moved by then. Their concern is that rewards routed through exchanges, affiliates, or loyalty programs could function economically like deposit interest.
Market impact
The immediate risk is to the bill's Senate math. If one of the four Republicans defects, supporters would need 12 additional votes instead of 11. If all four switch, the total would fall to 45 and the gap would rise to 15. That arithmetic remains hypothetical, because signing an amendment records a policy position rather than a confirmed future vote.
Stablecoin yield is also only one of two major negotiations. Democrats have sought stronger restrictions on public officials' crypto-related financial interests, while the Sept. 15 vote produced no Democratic support. Sen. Thom Tillis's motion to reconsider keeps CLARITY eligible for another vote, but no new vote date has been set. Future text will show whether the Moran-style language is adopted, narrowed, or rejected.
Frequently asked questions
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How many Senate votes does the CLARITY Act still need?
The bill needs 11 more votes to reach the 60 required for cloture, based on its 49-50 result on Sept. 15.
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Which Republican senators are tied to the stablecoin-yield amendment?
John Cornyn, John Curtis, Cindy Hyde-Smith, and Lisa Murkowski voted to advance CLARITY and also support Jerry Moran's amendment.
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What would the Moran amendment change?
It would broaden restrictions on rewards that function like bank interest, remove "solely" from one provision, and delete a subsection covering several reward calculations.
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How could Republican defections change the Senate math?
One defection would leave supporters needing 12 additional votes. If all four senators switched, the yes total would fall to 45 and the gap would reach 15.
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What other issue is complicating CLARITY Act negotiations?
Democrats are seeking stronger provisions on public officials' crypto-related financial interests. No Democrats supported the Sept. 15 vote.
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