A crucial amendment that was expected to delay passage of the CLARITY Act, also known as the crypto market structure bill, could be scrapped ahead of a vital committee vote this week, potentially simplifying the bill’s path forward.
Senate Crypto Bill Clears Key Hurdle
According to a report by Politico, Senator Roger Marshall of Kansas has agreed not to offer a proposed amendment targeting credit card swipe fees during the Senate Agriculture Committee’s markup of the crypto legislation, scheduled for Thursday, January 29.
Three people familiar with the private discussions said the decision was made over the weekend and could help secure broader backing for the bill from the cryptocurrency industry.
Marshall had filed the amendment just last week, seeking to force payment networks to compete on credit card swipe fees. The proposal closely mirrors the long‑running Credit Card Competition Act, which Marshall has championed for years alongside Senator Dick Durbin of Illinois.
However, in private conversations on Saturday, Marshall reportedly agreed not to bring the amendment forward during the markup, according to those with knowledge of the matter.
Marshall’s swipe‑fee amendment, which is also supported by Durbin and Senator Peter Welch of Vermont, was widely seen as a potential obstacle. Some Republicans who are inclined to support the crypto bill oppose the credit card provision, which would place major financial institutions in direct conflict with large retailers.
Durbin is not currently expected to introduce the amendment himself during the markup, according to a person familiar with the situation, although a final decision has not been confirmed.
Amendments Still Loom
The issue has reportedly drawn attention from the White House as well. Several people with insight into internal deliberations said administration officials became involved out of concern that the swipe‑fee amendment could derail the legislation.
One person described the amendment as something that would have “jeopardized” the bill’s passage, at a time when the White House is pushing for the measure to advance out of committee.
While the Marshall amendment may be off the table, other changes could still emerge. Journalist Eleanor Terrett noted on X (previously Twitter) that several amendments remain under consideration.
These include proposed ethics rules for US officials, a requirement that the Commodity Futures Trading Commission (CFTC) maintain at least four sitting commissioners following consultation with the minority party, anti‑fraud measures targeting crypto ATMs, and limits on participation by foreign adversaries in crypto markets.
Despite two additional weeks of bipartisan negotiations—negotiations that already delayed an earlier planned markup from January 15—the bill remains sharply divided along party lines. So far, only Republican members of the Senate Agriculture Committee have publicly expressed support for the legislation.
Nonetheless, the committee’s latest draft, posted on Wednesday, January 21, has received a positive response from the broader crypto industry. Industry participants have praised the text for providing explicit protections for noncustodial software developers and blockchain infrastructure providers.
The bill is seen as narrowly targeting intermediaries, rather than protocols or end users, a distinction many in the sector consider essential for maintaining innovation.
The draft also excludes provisions that would regulate stablecoin yields, a decision viewed as particularly significant following Coinbase’s recent withdrawal of support for the Senate Banking Committee’s version of the legislation.
Featured image from DALL-E, chart from TradingView.com
