The crypto market faces one of its most consequential regulatory tests this week as the US Senate Banking Committee prepares to vote on the CLARITY Act on Thursday, May 14. The markup session will determine whether the most comprehensive digital asset legislation in American history advances toward a full Senate floor vote — or returns to negotiation. What is happening in the days before that vote is as significant as the vote itself.
Crypto America host Eleanor Terret has reported a development that reveals the intensity of the lobbying battle now unfolding in Washington. Since last Friday, members of the American Bankers Association have sent more than 8,000 letters to Senate offices urging lawmakers to fix the stablecoin yield compromise embedded in the bill’s current draft. The effort is focused and coordinated — Terret noted on X that the campaign does not include a separate phone call effort, meaning the letter volume alone represents the banking industry’s current pressure strategy.
The target of that pressure is specific. The stablecoin yield provisions in the CLARITY Act would restrict issuers, exchanges, custodians, and wallet providers from offering deposit-like yield products — the “earn 3% to 5% just by holding USDC” model that has drawn millions of users into stablecoin products. Banks, who would benefit structurally from those restrictions, are pushing to ensure the final language holds.
Thursday’s vote will reveal whether 8,000 letters were enough.
The Amendments That Will Define Thursday’s Vote — and the Industry’s Next Decade
The pre-markup maneuvering has produced a series of amendments that reveal exactly where the fault lines are. Political and financial journalist Brendan Pedersen reports that Senators Reed of Rhode Island and Smith of Minnesota have filed an amendment that will force a direct choice between the crypto industry and the banking sector, specifically by incorporating the banks’ preferred changes to the stablecoin yield restrictions. The 8,000 letters from American Bankers Association members appear to have found legislative form.
Eleanor Terret has identified additional amendments that extend the battlefield considerably further. A Reed amendment would prohibit crypto from being used as legal tender — including for tax payments. The provision arrives as a pointed counter to a bill introduced last year by Representative Davidson that would have enabled Bitcoin to be used for exactly that purpose.
The most aggressive set comes from Senator Warren, who has filed more than 40 amendments ahead of Thursday’s markup. The most consequential would prevent the Federal Reserve from issuing master accounts to crypto companies — a restriction that would effectively close one of the most significant pathways toward crypto firms gaining direct access to the US banking system.
Thursday’s markup session is no longer simply a vote on the CLARITY Act as written. It is a live negotiation between competing visions of what role crypto will be permitted to play in American financial life — with amendments designed to draw lines that, once drawn, will be extremely difficult to redraw.
Crypto Market Reclaims $2.6 Trillion As Recovery Structure Strengthens
The total crypto market cap is trading near $2.68 trillion after recovering sharply from the February correction lows that briefly pushed the market close to the $2.2 trillion region. The chart shows that the broader crypto market has stabilized considerably during the last several weeks, with buyers successfully reclaiming several important technical levels that now define the current recovery structure.
One of the most important developments is the market’s ability to move back above the 200-week moving average, currently near the $2.55 trillion area. Historically, this level has acted as a major long-term trend indicator separating expansion phases from deeper corrective environments. Holding above it suggests that the broader market structure is transitioning away from capitulation conditions and back toward accumulation.
At the same time, the market remains below the declining 50-week moving average near $3 trillion and the 100-week moving average around $3.2 trillion. Those overhead levels continue to represent major resistance zones that buyers still need to overcome before confirming a broader bullish continuation.
Volume has also declined significantly compared to the panic-driven activity seen during the February selloff. That reduction suggests forced selling has largely cooled, but it also indicates that aggressive new capital inflows have not fully returned yet.
Featured image from ChatGPT, chart from TradingView.com
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