130+ Amendments, bipartisan battles, the life and death line of stablecoins: The most critical week for US crypto regulation

U.S. Cryptocurrency Regulation Legislation Enters a高潮. According to the latest news, senators have submitted over 130 amendments to the relevant bill, covering core issues such as stablecoin yields, DeFi compliance, and conflicts of interest for public officials. What’s more noteworthy is that this is not driven by a single party—both Democratic and Republican senators are broadly involved, reflecting that crypto regulation has become a truly bipartisan issue. On January 15, the Senate Banking Committee will hold a hearing, and the outcome of this vote could reshape the entire regulatory framework of the U.S. crypto market.

The Real Game Behind 130 Amendments

Core Disputes of the Amendments

The 130+ amendments submitted this time span a wide range of positions. Based on the content, they mainly revolve around three directions:

• Stablecoin Yield Mechanisms: Ranging from outright bans to conditional allowances, with voices on both ends
• DeFi Compliance Boundaries: How to define developer responsibilities and avoid overregulation harming innovation
• Digital Asset Mixers: How to balance anti-money laundering needs and privacy rights
• Public Officials’ Conflicts of Interest: Preventing officials from profiting from crypto-related interests

The most intense disputes center on stablecoin yields. Some amendments advocate for a complete ban on stablecoins offering yields to users, citing concerns that this could divert large amounts of funds from traditional banking systems. Others propose more moderate solutions, such as allowing exchanges to reward active trading but prohibiting interest payments on idle tokens.

Subtle Signals of Bipartisan Cooperation

What’s most noteworthy is that senators from both parties are not only debating but also reaching consensus on certain issues. For example, Republican Senator Thom Tillis and Democratic Senator Angela Alsobrooks jointly submitted three amendments. Two of these directly target stablecoins:

One suggests removing the restrictive phrase “solely by holding” from the bill’s original text, which effectively tightens the compliance space for stablecoins offering yields. The other adjusts the yield disclosure rules, introducing clearer risk warning requirements.

What does this indicate? It shows that even with differing stances, both parties share a consensus that “stablecoins should not become deposit tools to evade banking regulation.”

Why Are Stablecoins and DeFi the Focus?

According to related information, Coinbase has already threatened that if the bill restricts stablecoin rewards, it will reconsider supporting the CLARITY bill. This is no small matter—Coinbase’s stablecoin business contributed nearly $247 million in revenue in Q4 2024.

The underlying logic is clear: the banking industry fears that stablecoin yield products could divert trillions of dollars from traditional finance. If stablecoins can offer higher yields than banks, why would users keep money in banks? This challenges the fundamental interests of the financial system.

Meanwhile, the focus on DeFi is different. Senators Cynthia Lummis and Ron Wyden have proposed an independent bill mainly to protect DeFi developers who do not custody user funds, preventing them from being classified as “money transmitters.” This reflects lawmakers’ effort to balance two goals: risk prevention and safeguarding innovation.

Timeline and Market Impact Path

According to related information, the market expects an 80% chance of the CLARITY bill passing. But the key variable is the adoption of amendments. If stablecoin yields are strictly restricted, platforms like Coinbase might indeed withdraw support, leading to new disputes over the bill.

Market reactions show that investors are currently cautious. BTC hovers around $91,000, and ETF fund inflows have slowed. This indicates that the market is waiting for clearer rules rather than being blindly optimistic or pessimistic.

Global Perspective: U.S. Decisions Will Influence the World

Interestingly, this regulatory game in the U.S. contrasts with developments in other regions. According to related information, South Korea’s Financial Services Commission has just approved listing companies and professional investors to invest up to 5% of their equity in the top 20 cryptocurrencies by market cap. This signals that South Korea is opening the door for institutional funds.

The U.S. approach is different—more stringent regulation of stablecoins and DeFi, but also clearer rules. Both paths are vying for influence over the global crypto market.

Summary

U.S. crypto regulation is shifting from “ambiguous enforcement” to “clear rules.” The 130+ amendments reflect the real game in this process: financial institutions want to protect traditional banking, innovative companies want to retain growth space, and regulators seek a balance.

The January 15 vote will not be the end, but it is a crucial turning point. If the CLARITY bill passes with relatively moderate amendments, stablecoins and DeFi could gain clearer compliance pathways, encouraging long-term capital inflows. If amendments are too harsh, the industry may face new uncertainties.

Whatever the outcome, U.S. decisions will ripple globally. This is not just a U.S. regulatory issue but a matter of the global crypto landscape.