There are intense behind-the-scenes negotiations that are meant to finalize the Digital Asset Market Structure Act.
According to a recent report, senators on the Banking Committee submitted 137 amendments just before a 5:00 PM deadline on Wednesday.
The amendments target critical "stumbling blocks." These include DeFi regulation, ethical standards for officials holding digital assets, and the classification of digital commodities versus securities.
The "stablecoin rewards" standoff
The most contentious issue heading into the markup is a new restriction on stablecoin rewards. They have pitted the banking sector against major crypto-native platforms of the likes of Coinbase.
A newly unveiled draft of the high-stakes bill is targeting yield or interest for merely holding idle stablecoin balances. However, rewards tied to specific activities like staking or transacting may still be allowed.
Traditional banks have lobbied hard for this specific provision. They argue that interest-bearing stablecoins create a "deposit flight" risk.
CEO Brian Armstrong has warned that any restrictions beyond enhanced disclosure are a "red line" issue.
Coinbase, which is raking in massive stablecoin revenue, has threatened to withdraw its support for the legislation.
A contentious bill
The bill’s ancestry begins with the Financial Innovation and Technology for the 21st Century Act (FIT21).
In May 2024, the House passed FIT21 with significant bipartisan support. This was the first time a major crypto market structure bill cleared a chamber of Congress.
The bill has evolved significantly since then. Lawmakers went on to split stablecoins into their own bill: the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act.
The GENIUS Act was signed into law on July 18. The remaining "Market Structure" language was refined into the Digital Asset Market Clarity Act (the CLARITY Act). The House passed this version on July 17, sending it to the Senate.
The Senate slowed down due to partisan disagreements over consumer protections.
In December 2025, the Senate Banking Committee officially announced that the bill would be "punted" to 2026 to allow more time for bipartisan negotiations.
The bill entered its current negotiation phase in early 2026.
Alex Dovbnya
Arman Shirinyan
Caroline Amosun
Dan Burgin