Senate Crypto Bill Markup Moved to January 27 Amid Legislative Push
Senate Agriculture Committee Chairman John Boozman announced the legislative textual content for crypto market construction laws might be launched by the shut of enterprise on Wednesday, January 21, with a committee markup scheduled for Tuesday, January 27, at 3 p.m.
The timeline follows parallel motion by the Senate Banking Committee, the place senators submitted 137 amendments to the CLARITY Act forward of Thursday’s markup, in accordance to sources who considered the submission checklist.
“This schedule ensures transparency and permits for thorough assessment because the committee strikes ahead with laws to present readability and certainty for crypto markets,” Boozman mentioned in an announcement.
The chairman thanked Senator Cory Booker for continued partnership on the laws designed to present regulatory frameworks for digital asset markets.
NEW: After scrambling to meet the 5 PM deadline, Senators on the Banking Committee have submitted 137 amendments to final evening’s textual content, in accordance to a number of sources who’ve seen the checklist. Some of those might be debated throughout Thursday’s markup.
— Eleanor Terrett (@EleanorTerrett) January 14, 2026
Banking Lobby Secures Restrictions on Stablecoin Yield
The newest Senate Banking Committee draft prohibits digital asset service suppliers from paying curiosity solely for holding fee stablecoin balances, marking a big win for conventional banking teams.
The provision permits rewards tied to particular actions, together with transactions, pockets utilization, loyalty packages, liquidity provision, collateral deposits, and participation in community governance.
“Banks might have gained this spherical on stablecoin yield,” Fox Business reporter Eleanor Terrett wrote, noting the draft states firms can not pay curiosity only for holding balances.
The language emerged after intense lobbying from banking teams who warned that yield-bearing stablecoins may drain deposits from group establishments.
Coinbase informed the crypto business to “stand down on opposing the stablecoin yield language for now,” in accordance to Decrypt Senior Writer Sander Lutz, citing a supply with direct information.
The change characterised the provisions as “the least favorable language they’d nonetheless help,” with Lutz noting the corporate believes “the loopholes are first rate sufficient for yield on stablecoin exercise/loyalty packages.“
JPMorgan CFO Jeremy Barnum informed analysts the creation of “a parallel banking system that features one thing that appears so much like a deposit that pays curiosity, with out the related safeguards, is an clearly harmful and undesirable factor.”
The financial institution just lately reported $25 billion in web curiosity revenue final quarter, prompting crypto advocates to argue that banks oppose stablecoin yield to defend revenue margins fairly than shopper pursuits.
Democratic Opposition Threatens Bipartisan Consensus
Key Senate Democrats are demanding ethics guardrails that prohibit public officers, together with the president, from profiting off crypto enterprise ties, creating a possible deal-breaker for the laws.
Senator Adam Schiff mentioned ethics controls protecting the White House had been important, stating “that wants to be utilized to everybody.”
Senator Ruben Gallego went additional, calling it “a pink line” and warning, “They want to get it proper, or they’re not going to have sufficient votes to cross this.”
Three Democratic senators sent a letter demanding a full hearing earlier than Thursday’s markup, criticizing the discharge of legislative textual content “simply two days earlier than the markup.“
Industry sources informed Lutz that present vibes on the invoice’s likelihood is “NGMI” due to ongoing disagreement over ethics language between Senate Democrats and the White House.
Bo Hines of the Bitcoin Policy Institute warned that “if Democrats kill landmark laws that might cement U.S. management in fintech merely to rating political factors, they’ll have to clarify that alternative to voters in November.“
Industry Split on DeFi and Self-Custody Protections
The Banking Committee added a large new part on decentralized finance that the crypto foyer wasn’t anticipating, prompting business sources to specific concern over definitions and murky language.
Attorney Zack Shapiro’s detailed evaluation famous the bill protects software developers whereas establishing compliance stress on web-based consumer interfaces.
“The invoice explicitly protects software program builders and preserves the proper to self-custody digital belongings,” in accordance to the Senate Banking Committee GOP’s myth-versus-fact launch.
Section 605 states federal businesses might not “prohibit, prohibit, or in any other case impair” a US particular person’s skill to self-custody digital belongings for lawful functions.
Consensys legal professional Bill Hughes characterized the second as doubtlessly “one of the best deal you would ever hope to get,” arguing critics ought to “maintain your nostril and settle for” the compromise.
Paradigm VP Alexander Grieve additionally warned Congress would possibly “squander progress” by proscribing stablecoin rewards to service provider transactions, calling it “a government-mandated windfall for monetary intermediaries on the expense of particular person Americans.“
As it stands now, the invoice is progressing and Senator Cynthia Lummis has (*27*) bipartisan contributions, stating, “each part contains bipartisan enter and I look ahead to working with my Democratic colleagues to ship a invoice that secures America’s monetary future.“
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