David Sacks, the White House’s AI and crypto chief, says that the Digital Asset Market Clarity Act (CLARITY Act) is set to enter the mark-up phase in the U.S. Senate in January, marking a critical step toward final approval. Sacks says that the chair of the Senate banking committee, Tim Scott, and the chair of the Senate agriculture committee, John Boozman, have confirmed the timeline, thus facilitating formal review and amendments before a full Senate vote.
What happens in January
This update signals increased momentum for the bill after the House of Representatives advanced it earlier in 2025.
If the Senate process stays on track, lawmakers can finalize a reconciled version later this year. This will position the CLARITY Act as the central market structure law for the U.S. cryptocurrency markets. During the mark-up phase, Senate committees will review the text line by line as it was passed in the House of Representatives. Lawmakers will propose changes, discuss various policy trade-offs, and vote on the amendments before the revised law is sent to the Senate floor.
The process will involve both the banking committee, which oversees the regulation of securities, and the agriculture committee, which oversees the Commodity Futures Trading Commission (CFTC).
The goal is to resolve longstanding jurisdictional disputes between the SEC and CFTC and strengthen the regulatory framework for spot cryptocurrency markets.
Committee leaders have expressed a desire for a law that can gain bipartisan support and avoids reopening opportunities for stricter enforcement.
Likely amendment focus for the CLARITY Act
Amendments are expected to center around three areas.
First, it concerns the classification of assets, with stricter criteria to determine when a token is considered a digital commodity rather than a security.
Further protections for investors and consumers, such as transparency requirements, custody standards, and rules for conflicts of interest for exchanges and brokers.
Finally, timelines for implementation, including how quickly platforms must register and how regulators will coordinate oversight during the transition phase.
Senators may also adjust the language to limit overlap between state regulations without undermining state enforcement authority.
How will the CLARITY Act change U.S. crypto markets in 2026?
If the bill is passed, the CLARITY Act will change the U.S. cryptocurrency market in 2026. It will bring the spot digital assets market under CFTC oversight, end years of regulatory uncertainty, and establish a federal registration regime for exchanges, brokers, and dealers.
For the industry, this will reduce legal uncertainty, support institutional participation, and shift compliance from courtrooms to rules-based oversight.
For regulators, the law will replace fragmented enforcement with clearer mandates.
Most importantly, the market will receive the U.S.'s first comprehensive framework for crypto trading. This could potentially restore competitiveness with jurisdictions that have already offered regulatory clarity.
