SEC Chairman: Confident 'Clarity Act' Will Be Presented to the President for Signature This Year

U.S. Securities and Exchange Commission (SEC) Chair Paul Atkins has expressed confidence that a comprehensive cryptocurrency market structure bill will reach President Donald Trump's desk for signing in 2026 according to LookOnChain. The bill, known as the Clarity Act, aims to establish a clear legal framework for the U.S. crypto industry, reducing regulatory ambiguity and encouraging innovation. The bill would define the roles of the SEC and CFTC in overseeing digital assets, aligning with the administration's goal of positioning the U.S. as a global crypto hub as reported by LookOnChain.

The Clarity Act has been stalled for months due to ongoing negotiations over key provisions, including stablecoin reward structures and decentralized finance (DeFi) protections. The Senate Agriculture Committee has pushed its markup session to the last week of January, while the Senate Banking Committee is expected to hold its markup soon according to BeInCrypto. These delays reflect the complex nature of the bill and the need to balance competing interests from banks, crypto firms, and consumer advocates.

Stablecoin rules remain a major sticking point in the negotiations. The bill would restrict rewards for simply holding stablecoins, a move that has drawn support from banking groups concerned about deposit flight. However, the legislation includes exemptions for activity-based rewards, such as those tied to loyalty programs as Bloomberg reported. This provision is expected to be welcomed by crypto exchanges like Coinbase, which offer such rewards to users. The final language will determine whether stablecoin platforms face tighter regulation or retain flexibility according to BeInCrypto.

Why Did This Happen?

The Clarity Act represents a shift in U.S. regulatory policy, moving away from an enforcement-driven approach to a more predictable and rules-based system. This change is intended to reduce uncertainty for market participants and encourage institutional investment in crypto assets like Bitcoin and Ethereum according to Coinpedia. The bill would also create federal rules for crypto exchanges, brokers, and custodians, including asset segregation and market surveillance standards as BeInCrypto reported. These measures aim to enhance transparency and reduce risks associated with market manipulation and fake trading volume.

Decentralized finance is another key area of focus in the bill. The Blockchain Regulatory Certainty Act, a provision within the Clarity Act, seeks to protect software developers who do not control user funds as Coinpedia noted. This measure is intended to prevent overregulation of DeFi platforms and foster innovation in the space. However, some lawmakers remain concerned about the risks of unregulated lending and trading in decentralized markets according to Cointelegraph.

How Did Markets React?

The potential passage of the Clarity Act has already had a positive effect on crypto markets. Bitcoin and other digital assets have seen increased buying interest, with some analysts suggesting the regulatory clarity could support further gains as Yahoo Finance reported. The SEC's all-Republican composition has also contributed to a more favorable regulatory environment, with enforcement activity slowing and new rules being proposed that align with industry interests according to Cointelegraph.

Institutional investors are also showing renewed interest in crypto markets, with major banks and asset managers exploring new products and services. The SEC's recent shift toward a more accommodating stance has helped build trust among market participants as Yahoo Finance noted. If the Clarity Act is signed into law, it could mark a turning point for the U.S. crypto industry, leading to greater adoption and innovation according to LookOnChain.

What Are Analysts Watching Next?

Analysts are closely watching how the final version of the Clarity Act is negotiated and whether it will pass as expected. The bill's prospects depend on the ability of lawmakers to resolve remaining disagreements, particularly around stablecoin rewards and DeFi protections according to BeInCrypto. Any changes that restrict key business models could lead to industry pushback and potential delays in the bill's approval as BeInCrypto reported.

Another key issue is how the SEC and CFTC will enforce the new rules once the bill is in effect. The SEC has already outlined plans for a "token taxonomy" that would define different categories of digital assets, including digital commodities, network tokens, and digital collectibles as Yahoo Finance reported. These classifications could have significant implications for how crypto platforms operate and how investors manage their portfolios.

The Clarity Act is expected to have a lasting impact on the U.S. crypto market, providing a foundation for long-term growth and stability. Whether it passes in 2026 or is delayed into the next year, the bill represents a major step toward regulatory clarity and investor confidence according to LookOnChain.