Senate Confirms Markup of Clarity Act in Key Crypto Push

US Crypto Bill Gets Senate Green Light in January Markup

White House crypto and AI czar David Sacks confirmed on Thursday that the Senate will begin a markup session for the Digital Asset Market Clarity Act in January 2025. The bill, which seeks to clarify the jurisdiction of the SEC and CFTC in regulating digital assets, is now poised for a crucial step toward potential passage. This follows confirmations from Senate Banking Committee Chair Tim Scott and Agriculture Committee Chair John Boozman.

The Clarity Act has already cleared the House with bipartisan support and now moves to the Senate, where it will be debated alongside the chamber's own version of the bill. A markup session, scheduled for January, will review and potentially merge elements of both versions. Sacks emphasized the importance of the legislation, calling it a "landmark crypto market structure" bill.

The Senate's version of the bill includes provisions to define a new category of "ancillary assets," which could reshape how certain cryptocurrencies are classified. However, it is still in a draft stage. The markup session will bring House and Senate versions together, with the goal of finalizing a compromise by early 2026.

A Path to Clarity

The Clarity Act aims to resolve long-standing ambiguities in how digital assets are regulated in the US. It assigns oversight to either the SEC or CFTC based on whether a cryptocurrency is deemed a security or a commodity. This clarity, according to Sacks, will reduce regulatory uncertainty for the industry and foster innovation. The bill is backed by major industry players, including Coinbase, Ripple, and Kraken, who have been involved in shaping its provisions.

Industry leaders have long pushed for regulatory clarity, with over 80% of digital asset firms reporting that unclear rules have hindered growth. The Blockchain Association estimates the industry has lost $50 billion in potential investments due to regulatory delays.

. The Clarity Act is seen as a critical step toward stabilizing the market and encouraging new entrants.

Political Challenges and Prospects

Despite the progress, challenges remain. President Donald Trump has been vocal about his desire to consolidate authority over federal agencies, including the SEC and CFTC. However, Trump recently indicated he is open to appointing Democratic commissioners to both agencies, a move that could ease concerns among Senate Democrats. This development offers a glimmer of hope for bipartisan cooperation, though the Supreme Court's decision on presidential power over agency appointments could complicate matters.

Senate leaders, including Scott, have acknowledged delays and now expect the bill to be formally considered in early 2026. The timeline remains tight, with the legislative calendar slowing as the 2026 midterms approach. The success of the Clarity Act will depend on balancing industry needs with political realities, including the looming uncertainty of agency oversight.

Implications for Investors and the Market

For everyday investors, the Clarity Act could bring greater confidence in the market by establishing clear rules and protections. The bill defines digital assets as either securities or commodities, which could simplify trading and lower fees for consumers. For instance, Bitcoin, currently treated as a commodity by the CFTC, would remain under that classification, streamlining its use in traditional financial systems.

Crypto businesses also stand to benefit. The bill reduces compliance costs and creates a predictable regulatory framework, allowing firms to scale operations without constant legal uncertainty. This is especially important for smaller companies that lack the resources to navigate a fragmented regulatory landscape.

Next Steps

With the markup session set for January, the Clarity Act will now undergo detailed review and potential amendments. The final version could blend elements from the House and Senate versions, ensuring broader support across political lines. The outcome of these discussions will determine whether the bill moves to a full Senate vote and eventually to the president's desk.

As the legislative process unfolds, market participants are closely watching for signals of support or resistance. A successful passage of the Clarity Act would mark a turning point for the US crypto industry, bringing much-needed clarity and potentially unlocking new opportunities for growth and investment.