Senate Crypto Bill Markup Moved to January 27 Amid Legislative Push

Senate Crypto Bill Markup Moved to January 27 Amid Legisl... Senate crypto legislation moves forward with stablecoin yield restrictions favoring banks and new DeFi provisions, while Democratic senators threaten to block passage without ethics controls covering White House business ties. The post Senate Crypto Bill Markup Moved to January 27 Amid Legislative P... Senate Agriculture Committee Chairman John Boozman announced the legislative text for crypto market structure legislation will be released by the close of business on Wednesday, January 21, with a committee markup scheduled for Tuesday, January 27, at 3 p.m.The timeline follows parallel action by the Senate Banking Committee, where senators submitted 137 amendments to the CLARITY Act ahead of Thursday's markup, according to sources who viewed the submission list."This schedule ensures transparency and allows for thorough review as the committee moves forward with legislation to provide clarity and certainty for crypto markets," Boozman said in a statement. The chairman thanked Senator Cory Booker for continued partnership on the legislation designed to provide regulatory frameworks for digital asset markets. NEW: After scrambling to meet the 5âEUR¯PM deadline, Senators on the Banking Committee have submitted 137 amendments to last nightâEUR(TM)s text, according to multiple sources who have seen the list. Some of these will be debated during ThursdayâEUR(TM)s markup.- Eleanor Terrett (@EleanorTerrett) January 14, 2026 Banking Lobby Secures Restrictions on Stablecoin YieldThe latest Senate Banking Committee draft prohibits digital asset service providers from paying interest solely for holding payment stablecoin balances, marking a significant win for traditional banking groups.The provision allows rewards tied to specific activities, including transactions, wallet usage, loyalty programs, liquidity provision, collateral deposits, and participation in network governance."Banks may have won this round on stablecoin yield," Fox Business reporter Eleanor Terrett wrote, noting the draft states companies cannot pay interest just for holding balances.The language emerged after intense lobbying from banking groups who warned that yield-bearing stablecoins could drain deposits from community institutions.Coinbase told the crypto industry to "stand down on opposing the stablecoin yield language for now," according to Decrypt Senior Writer Sander Lutz, citing a source with direct knowledge.The exchange characterized the provisions as "the least favorable language they'd still support," with Lutz noting the company believes "the loopholes are decent enough for yield on stablecoin activity/loyalty programs." Key update: Coinbase is telling the crypto industry to stand down on opposing the stablecoin yield language for now, a source with direct knowledge tells me. Saying it's a win for the banks but it's basically the least favorable language they'd still support. If it gets worse-ifâEUR¦ https://t.co/6DgoEz0a1W- Sander Lutz (@s_lutz95) January 13, 2026 JPMorgan CFO Jeremy Barnum told analysts the creation of "a parallel banking system that includes something that looks a lot like a deposit that pays interest, without the associated safeguards, is an obviously dangerous and undesirable thing." The bank recently reported $25 billion in net interest income last quarter, prompting crypto advocates to argue that banks oppose stablecoin yield to protect profit margins rather than consumer interests.Democratic Opposition Threatens Bipartisan ConsensusKey Senate Democrats are demanding ethics guardrails that prohibit public officials, including the president, from profiting off crypto business ties, creating a potential deal-breaker for the legislation.Senator Adam Schiff said ethics controls covering the White House were essential, stating "that needs to be applied to everyone."Senator Ruben Gallego went further, calling it "a red line" and warning, "They need to get it right, or they're not going to have enough votes to pass this." Three Democratic senators sent a letter demanding a full hearing before Thursday's markup, criticizing the release of legislative text "just two days before the markup."Industry sources told Lutz that current vibes on the bill's chances are "NGMI" due to ongoing disagreement over ethics language between Senate Democrats and the White House. If Democrats kill landmark legislation that would cement U.S. leadership in fintech- simply to score political points- theyâEUR(TM)ll have to explain that choice to voters in November. https://t.co/Q1F7jYEWDo- Bo Hines (@BoHines) January 13, 2026 Bo Hines of the Bitcoin P...