The legislative path for the Digital Asset Market Clarity Act turned into a minefield this morning. Senators have filed over 130 amendments ahead of Thursday’s critical Banking Committee markup, transforming a bipartisan framework into a high-stakes battleground over the definition of money.
At the center of the storm is a new provision that would effectively ban passive yield on stablecoins. Under the proposed text, digital asset service providers are prohibited from paying interest "solely in connection with the holding of a payment stablecoin."
The ‘Active’ Loophole
The amendment draws a sharp regulatory line: passive income is dead; active participation is legal. While "deposit-like" interest is banned, a direct concession to the American Bankers Association (ABA), which views stablecoins as an existential threat to low-cost bank deposits—yields tied to staking, liquidity provision, or governance remain permissible.
"The Senate’s compromise on stablecoin yield… is a clear sign that the powers that be are committed to ensuring stablecoins remain attractive… while placating banks." Nic Puckrin, Coin Bureau Co-Founder
Surveillance Creep
Beyond the yield wars, privacy advocates are flagging a "sleeper" amendment that expands U.S. Treasury powers. New language could authorize the freezing of assets associated with DeFi front-ends and mixers without a court order, a significant escalation in financial surveillance capabilities.
The Calendar
The Senate Banking Committee marks up the bill on January 15, followed by the Agriculture Committee’s session on January 27. With timelines tightening before the 2026 election cycle, the industry has less than two weeks to lobby against the most restrictive surveillance clauses.
