Senate Banking Committee Sets Firm Deadline for Landmark Crypto Market Structure Vote

Senator John Kennedy confirmed on January 6 that the Senate Banking Committee will hold a markup vote on the CLARITY Act on January 16, 2026 according to reports. The bill aims to define regulatory roles between the SEC and CFTC for crypto markets, with the CFTC designated as the primary spot market regulator as detailed. Despite bipartisan efforts, pressing issues like DeFi regulation and ethics concerns remain unresolved according to analysis.

The markup vote is set to proceed regardless of full agreement, as Senator Tim Scott emphasized he would push forward with the vote 'come hell or high water' as stated. A government shutdown before January 30 could delay progress, adding urgency to the timeline according to reports. The House passed its version of the bill in July 2025, but the Senate must still advance its version for reconciliation as noted.

Industry observers estimate a 50% to 60% chance the bill becomes law in 2026 according to estimates. The legislation would follow the GENIUS Act, which mandated stablecoin reserve requirements and anti-money laundering measures as reported.

Why the Move Happened

The Senate Banking Committee aims to finalize the CLARITY Act by early January to prevent delays caused by government funding deadlines and mid-term elections according to analysis. If the bill is not passed by April, its chances of becoming law in 2026 will decrease significantly as projected.

Unresolved issues include how to regulate stablecoins offering interest, DeFi protocols under anti-money laundering rules, and the Trump family's crypto ventures according to reports. The Trump family's involvement in World Liberty Financial and their $1 billion in profits raise concerns about conflicts of interest as detailed.

What Analysts Are Watching

Goldman Sachs highlights the importance of regulatory clarity for institutional adoption of crypto according to analysis. The bank identifies U.S. market structure legislation as a key driver of broader institutional participation as stated.

If the Senate fails to mark up the CLARITY Act by January 30, a government shutdown could halt further progress according to reports. Lawmakers may delay action until after the midterms if they expect a change in congressional control as reported.

What Happens Next

The House has already passed the Digital Asset Market Clarity Act, and now awaits the Senate's version for reconciliation according to reports. If the Senate passes the CLARITY Act without changes, it will move directly to President Trump for final approval as stated.

Analysts and market participants are closely watching the outcome of the markup, as it could determine the regulatory trajectory for the crypto sector according to analysis. A government shutdown or political shifts could significantly impact the bill's progress as reported.