diff --git a/lbrynet/extras/daemon/Daemon.py b/lbrynet/extras/daemon/Daemon.py
index 5326c5203..b3fd515a1 100644
--- a/lbrynet/extras/daemon/Daemon.py
+++ b/lbrynet/extras/daemon/Daemon.py
@@ -2609,8 +2609,8 @@ class Daemon(metaclass=JSONRPCServerType):
         elif old_txo.claim.is_signed and not clear_channel and not replace:
             channel = old_txo.channel
 
-        if 'fee_address' in kwargs:
-            self.valid_address_or_error(kwargs['fee_address'])
+        if 'fee_amount' in kwargs:
+            kwargs['fee_address'] = self.get_fee_address(kwargs, claim_address)
 
         if replace:
             claim = Claim()
diff --git a/tests/integration/test_claim_commands.py b/tests/integration/test_claim_commands.py
index 34add9fe5..9662d208a 100644
--- a/tests/integration/test_claim_commands.py
+++ b/tests/integration/test_claim_commands.py
@@ -711,6 +711,14 @@ class StreamCommands(ClaimTestCase):
         del fixed_values['fee']
         self.assertEqual(txo['value'], fixed_values)
 
+        # setting the fee after it has been cleared, without a fee address, sets the fee address to claim address
+        tx = await self.out(self.stream_update(claim_id, fee_amount='0.1', fee_currency='LBC'))
+        txo = tx['outputs'][0]
+        self.assertIn('fee', txo['value'])
+        self.assertIn('address', txo['value']['fee'])
+        self.assertEqual(txo['value']['fee']['address'], txo['address'])
+        fixed_values['fee'] = txo['value']['fee']
+
         # modifying hash/size/name
         fixed_values['source']['name'] = 'changed_name'
         fixed_values['source']['hash'] = 'cafebeef'
diff --git a/tests/integration/test_file_commands.py b/tests/integration/test_file_commands.py
index 38b7b6e79..43a960a24 100644
--- a/tests/integration/test_file_commands.py
+++ b/tests/integration/test_file_commands.py
@@ -4,8 +4,10 @@ import os
 from binascii import unhexlify, hexlify
 
 from lbrynet.schema import Claim
+from lbrynet.schema.claim import Stream
 from lbrynet.testcase import CommandTestCase
 from lbrynet.blob_exchange.downloader import BlobDownloader
+from lbrynet.wallet.transaction import Transaction
 
 
 class FileCommands(CommandTestCase):
@@ -262,12 +264,12 @@ class FileCommands(CommandTestCase):
         await self.daemon.jsonrpc_file_delete(claim_name='icanpay')
 
         # PASS: no fee address --> use the claim address to pay
-        await self.stream_create(
+        tx = await self.stream_create(
             'nofeeaddress', '0.01', data=b'free stuff?',
         )
-        await self.stream_update(
-            claim_id=self.daemon.jsonrpc_file_list()[0].claim_id,
-            data=b'new price', fee_amount='2.0', fee_currency='LBC', claim_address=target_address
+        await self.__raw_value_update(
+            old_tx=tx,
+            fee_amount='2.0', fee_currency='LBC', claim_address=target_address
         )
         self.assertIs(self.daemon.jsonrpc_file_list()[0].stream_claim_info.claim.stream.fee.address, '')
         await self.daemon.jsonrpc_file_delete(claim_name='nofeeaddress')
@@ -278,3 +280,18 @@ class FileCommands(CommandTestCase):
         self.assertEqual(len(self.daemon.jsonrpc_file_list()), 1)
         self.assertEqual(response['content_fee']['outputs'][0]['amount'], '2.0')
         self.assertEqual(response['content_fee']['outputs'][0]['address'], target_address)
+
+    async def __raw_value_update(self, old_tx, claim_address, **kwargs):
+        old_tx = Transaction(raw=unhexlify(old_tx['hex']))
+        old_txo = old_tx.outputs[0]
+        claim = Claim()
+        claim.stream.message.source.CopyFrom(
+            old_txo.claim.stream.message.source
+        )
+        claim.stream.update(**kwargs)
+        tx = await Transaction.claim_update(
+            old_txo, claim, 1, claim_address, [self.account], self.account
+        )
+        await tx.sign([self.account])
+        await self.broadcast(tx)
+        await self.confirm_tx(tx.id)