CLARITY Act Hits 100+ Amendments as Banks Fire 8,000 Letters to Kill Stablecoin Rewards!

The Senate Banking Committee's CLARITY Act is heading into markup under severe pressure, with more than 100 proposed amendments threatening to unravel a fragile stablecoin compromise. The amendment count mirrors the January effort that collapsed at 137 proposals — a signal that the bill remains deeply unsettled despite months of negotiation.

The sharpest fight is over stablecoin rewards. Banking groups have sent 8,000 demand letters urging senators to close what they see as a loophole allowing crypto platforms to offer yield-like incentives that compete with insured deposits. Sens. Reed and Smith filed an amendment targeting rewards that are "substantially similar" to deposit interest, which would hand regulators broader authority to block incentive programs. Stand With Crypto, the Coinbase-backed advocacy group, countered with 8,000 calls, 300,000 emails, and nearly 1.5 million…