Key Highlights
- Senate committees will take up the CLARITY Act in January, starting a formal markup after House passage.
- The bill aims to clearly divide crypto oversight between the SEC and the CFTC to end regulatory uncertainty.
- If approved, it could establish the first comprehensive U.S. crypto market framework by 2026.
The long-pending Digital Asset Market Clarity Act, commonly known as the CLARITY Act, is set to reach a critical legislative phase in January, according to White House AI and Crypto Czar David Sacks.
The update confirms that the U.S. Senate will begin formal markup of the bill, marking one of the most significant steps yet toward establishing a federal framework for crypto markets. Sacks said Senate Banking Committee Chair Tim Scott and Senate Agriculture Committee Chair John Boozman have confirmed the timeline.
The markup process will allow lawmakers to review, debate, and amend the bill before it advances to a full Senate vote. If the process remains on track, Congress could finalize a reconciled version later in 2025.
“We are closer than ever to passing the landmark crypto market structure legislation that President Trump has called for,” Sacks wrote in a post on X, adding that lawmakers aim to “finish the job in January.”
What the Senate markup will cover
The CLARITY Act already cleared the House in July, making the Senate review the next major hurdle. During markup, members of both the Banking Committee and the Agriculture Committee will examine the House-passed text line by line.
The dual committee process reflects the bill’s core goal, clarifying jurisdiction between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). The Agriculture Committee oversees the CFTC in the U.S. Congress, focusing on derivatives and commodities, while the Banking Committee oversees the SEC and broader financial markets.
Legislators seek to address long-standing controversies on whether digital assets should be subject to securities or commodities law, a query that has contributed to years of regulatory ambiguity and enforcement measures.
Committee leaders have indicated they want amendments that can attract bipartisan support, while avoiding a return to enforcement-first regulatory approaches that have drawn criticism from the crypto industry.
Likely changes and policy debates
Amendments are supposed to be centered by senators on the classification of assets, such as the introduction of more explicit guidelines on when a token should be classified as a digital commodity or a security.
Another major area of discussion involves implementation timelines, such as how quickly trading platforms must register and how regulators coordinate oversight during the transition period.
Lawmakers may also refine language around federal preemption to limit overlapping state regulations without weakening state-level enforcement authority.
Why the CLARITY act matters
The CLARITY Act would transform the US crypto markets as early as 2026 in case it is enacted. The legislation would subject spot digital commodity markets to CFTC regulation, and establish a federal registration system of exchanges, brokers and dealers.
Supporters argue this would create less legal uncertainty, promote institutional involvement, and transform the compliance struggle into a rule-based oversight. For regulators, the bill would replace fragmented oversight with clearer mandates.
To markets, it would be the first wholesome crypto trading system in the United States, which may enhance competitiveness with other jurisdictions that already provide regulatory certainty.
Background and recent developments
Progress on the bill has been slower than initially expected. Senator Cynthia Lummis had predicted that the legislation could reach President Donald Trump’s desk before the end of 2025.
However, a record 43-day US government shutdown in October and November delayed Senate action. Despite the pause, regulators continued discussions with executives from Coinbase, Ripple, Circle, and other crypto firms to maintain momentum.
Sacks’ confirmation of a January markup aligns with earlier reports that the Senate process would spill into the new year. If the Senate passes the bill with amendments, it will return to the House for final approval before heading to the president for signature.
Also Read: FDIC Prepares GENIUS Act Framework to Regulate Stablecoin Issuers