XRP News: Senator Warren Blocks Fed Master Accounts for Ripple, Crypto Firms in CLARITY Act
Highlights
- Anti-crypto Senator Elizabeth Warren submitted more than 40 amendments to the CLARITY Act.
- Warren's proposal aims to block Fed master account for Ripple and other crypto firms.
- An amendment by Democrats prohibits crypto from being used as legal tender, such as to pay taxes.
In significant XRP news today, Senator Elizabeth Warren submits more than 40 amendments to the CLARITY Act, with one to block the Fed from issuing master accounts to crypto companies, including Ripple.
This move comes just ahead of Thursday’s markup vote in the Senate Banking Committee. Anti-crypto Warren leads banking industry’s push against stablecoin yield compromise.
XRP News: Senator Warren Proposes Fed Master Accounts Ban for Ripple and Crypto Companies
The US Senate Banking Committee has reportedly received more than 100 amendments to the CLARITY Act draft text, Politico reported on May 13. These amendments target crypto stablecoin yield compromise, Bitcoin uses in traditional finance, and crypto companies.
Senator Elizabeth Warren submitted more than 40 amendments to oppose the CLARITY Act text. One proposal aims to prevent the US Federal Reserve from granting master accounts to crypto firms. XRP-linked Ripple, Anchorage Digital, Circle, and Custodia Bank have applied for Fed master accounts. As Coingape reported earlier, Kraken received a Fed master account.
“This bill puts investors, our national security and our entire financial system at risk – and it will turbocharge Donald Trump’s crypto corruption. No Member of the Committee should support a bill that fails to stop the massive conflict of interests posed by Donald Trump and his family’s crypto ventures,” Warren said.
Warren faced backlash from the crypto industry, alleging the amendment is designed to shield banks from competition. Senator Warren is pushing the CLARITY Act amendment to block crypto firms like Ripple from obtaining a Fed master account, despite Ripple receiving an OCC approval for a bank charter.
Senators Forced to Choose Between Banks and Crypto Innovation
Senator Elizabeth Warren’s amendment to the CLARITY Act is not alone. Fellow Democrats, Jack Reed and Tina Smith have filed separate proposals that would force senators to choose between supporting crypto innovation and protecting banks.
These include stablecoin yield restrictions and a ban on using crypto such as Bitcoin and XRP as legal tender for paying taxes. Senators believe CLARITY Act text is aimed at providing regulatory clarity for crypto assets, stablecoins, and market structure, while keeping financial innovation in the US. However, amendments signal that the upcoming markup could lead to further negotiations.
Patrick Witt, Executive Director of the President’s Council of Advisors for Digital Assets, sarcastically reacted to Elizabeth Warren staying up all night to read more than 300 pages of the CLARITY Act and deliver an objection.
XRP price reclaims above $1.45 amid the news, after falling to $1.42 as US CPI inflation rises to 3.8%. Trading volume has decreased by another 6% over the last 24 hours.
I’m so impressed that Elizabeth Warren stayed up all night to read the 300+ pages of the CLARITY Act and deliver an objective assessment of the bill’s merits and not just some knee-jerk reaction. This is what true public service looks like. https://t.co/3KRyzvYYWy
— Patrick Witt (@patrickjwitt) May 12, 2026
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