Senators Move to Shield Crypto Developers as Lawmakers Advance Sweeping Digital Asset Bill

U.S. lawmakers are moving closer to finalizing a major digital asset market structure bill. The Senate Banking Committee announced on Jan. 9, 2026, that it will hold a markup session on Jan. 15, 2026, for the Digital Asset Market Clarity Act. This bill aims to provide regulatory clarity for the fast-growing crypto sector by defining digital commodities and clarifying oversight responsibilities.

The bill, supported by Senate Banking Committee Chairman Tim Scott, is part of a broader effort to make the U.S. a global leader in cryptocurrency innovation. Scott emphasized that the bill will help ensure future jobs and innovation in the sector remain in the United States rather than overseas.

At the heart of the bill is the distinction between digital commodities and other asset classes. The current draft excludes securities, derivatives, and stablecoins from the definition of digital commodities. The legislation also grants the CFTC primary authority over spot crypto markets, with the SEC retaining oversight of investment contracts.

Why Did This Happen?

The push for legislative action gained momentum after the House passed the CLARITY Act in July 2025. The Senate’s version of the bill incorporates elements from the House bill and combines it with the Responsible Financial Innovation Act to create a more comprehensive framework. The goal is to establish clear regulatory rules while promoting U.S.-based innovation.

Senators have faced challenges in reaching a bipartisan consensus. Democratic leaders, including Elizabeth Warren and Catherine Cortez Masto, continue to push for stronger ethics provisions to prevent conflicts of interest between regulators and the crypto industry. These provisions aim to prevent elected officials from profiting from the very industries they oversee.

Market participants are closely watching the developments. Analysts suggest that a well-crafted regulatory framework could attract institutional capital to the U.S. crypto market. Galaxy Research's Alex Thorn highlighted that the most consequential discussions involve how to regulate decentralized finance (DeFi) under anti-money-laundering rules.

Bitcoin, currently trading near $90,000, has shown resilience amid regulatory uncertainty. The price movement reflects a broader trend of investor optimism that the U.S. will establish a clear and stable regulatory environment.

What Are Analysts Watching Next?

The outcome of the markup session on Jan. 15 will determine whether the bill moves to the full Senate for final consideration. If passed, the legislation would set a precedent for how digital assets are classified and regulated in the U.S. It could also influence global regulatory approaches as other countries watch the U.S. take a leading role.

The bill also includes provisions related to stablecoins, which have become a contentious issue among lawmakers. Traditional banks are concerned about stablecoin issuers offering high-yield products that could disrupt traditional deposit systems.

The DeFi sector is also under scrutiny. A recent securities fraud lawsuit against DeFi Technologies Inc. (DEFT) highlights the risks associated with regulatory ambiguity. The case alleges that the company misrepresented its arbitrage strategy and downplayed competition. Shareholders have until Jan. 30, 2026, to file a lead plaintiff motion.

Regulatory clarity is seen as a key factor in attracting long-term institutional investment to the crypto space. Investors are betting that the U.S. will become a crypto-friendly jurisdiction, which could boost adoption and innovation.

The final version of the Digital Asset Market Clarity Act will likely include adjustments to investor protections, anti-money-laundering requirements, and compliance standards for crypto entities. The bill's success depends on resolving outstanding debates around ethics, jurisdiction, and stablecoin regulation.