Senator Elizabeth Warren has submitted more than 40 amendments to the CLARITY Act, with one specifically targeting Federal Reserve master accounts for cryptocurrency companies, including Ripple. The move comes just ahead of Thursday’s scheduled markup vote in the Senate Banking Committee, intensifying the legislative battle over digital asset regulation.
Warren's amendment reflects her longstanding skepticism toward the crypto industry, which she has characterized as a threat to consumer protection and financial stability. The provision would prevent the Fed from granting master accounts — a critical gateway for accessing the central bank's payment systems — to crypto entities.
The timing of the amendment is notable, landing as the CLARITY Act advances through committee. The legislation aims to establish a clearer regulatory framework for stablecoins and digital assets, but Warren's additions signal that the floor debate will be contentious.
If adopted, the measure would effectively bar Ripple and other crypto firms from accessing Fed master accounts, potentially limiting their ability to offer certain banking-like services. The banking industry has backed Warren's push, viewing it as a way to maintain the traditional financial system's competitive edge.
Critics argue that blocking master accounts could stifle innovation and force crypto firms to operate outside the regulated banking system, increasing risks rather than reducing them. The outcome of Thursday's markup vote remains uncertain.