US Senate Set to Vote on CLARITY Act for Crypto Market Clarity Next Week

The U.S. Senate Banking Committee will hold a markup vote on the Digital Asset Market Clarity Act on Thursday, January 16, 2026, according to Senate leaders. The bill, which aims to establish a federal regulatory framework for digital assets, has faced delays and unresolved debates over the past year.

The legislation will clarify the roles of the SEC and CFTC in regulating crypto markets, designate the CFTC as the primary spot market regulator, and outline how securities laws apply to digital tokens. It also addresses stablecoin regulations, DeFi, and ethics concerns tied to the Trump administration's crypto ventures according to Cointelegraph.

Senators have spent months refining the bill, with multiple drafts circulated to members of the committee. However, key disagreements persist, particularly around stablecoins that offer interest to holders and the oversight of DeFi protocols as reported by Cryptopolitan.

Why Did This Happen?

The markup follows a timeline outlined by White House crypto and AI czar David Sacks, who confirmed the vote would occur in January. The House of Representatives passed a version of the bill in July 2025, and now the Senate is expected to move forward with its version according to Coinpedia.

Senate Banking Committee Chairman Tim Scott has stated that a vote will happen regardless of whether full consensus is reached. This firm timeline reflects growing pressure to finalize regulations and prevent further delays as Cointelegraph reports.

What Are Analysts Watching?

Crypto industry leaders are divided on the bill's potential impact. Some believe it will bring much-needed clarity and regulatory certainty, while others fear it could replicate the enforcement-heavy approach seen under former SEC Chair Gary Gensler according to Cryptopolitan.

The bill also raises ethical concerns around the Trump family's involvement in crypto ventures, particularly World Liberty Financial and the Trump memecoin. These ventures have raised questions about conflicts of interest and regulatory impartiality as noted by Cryptopolitan.

Banks have also voiced concerns about stablecoins that offer yield to holders, arguing that such models could undercut traditional lending and shift trillions of dollars out of the banking system. More than 200 community bank leaders have called for tighter rules to close perceived loopholes in the GENIUS Act according to Decrypt.

How Could the Bill Affect Markets?

The passage of the CLARITY Act is seen as a critical step for U.S. crypto leadership. If the bill moves forward, it could solidify the U.S. position as a global leader in digital asset regulation, following the passage of the GENIUS Act in 2025 according to Investing.com.

However, delays or significant changes to the bill could weaken the U.S. position compared to regulatory frameworks in the EU, UK, and UAE. Some crypto advocates argue that a failure to act quickly could result in market opportunities shifting to other jurisdictions as Crypto.news reports.

The bill's impact on stablecoins is also a key point of focus. The GENIUS Act already prohibits stablecoin issuers from offering interest directly, but critics argue that crypto exchanges and affiliated companies can still offer rewards to stablecoin holders, undermining the intent of the law according to TradingView.

Industry stakeholders are watching whether the Senate will address these concerns and clarify the rules for stablecoin yields. Failure to do so could result in regulatory uncertainty and continued tensions between banks and crypto companies as TradingView reports.

What Are the Risks of Delay?

If the Senate fails to advance the CLARITY Act by early April, the chances of its passage in 2026 will likely diminish. The November 2026 midterm elections could also shift political dynamics, potentially delaying action until after the elections according to Cryptopolitan.

A government shutdown, which could occur if Congress fails to pass a continuing resolution by January 30, could further derail progress on the bill. This would not only delay the CLARITY Act but also impact the broader regulatory landscape for crypto in the U.S. as Crypto.news reports.

Industry advocates estimate a 50–60% chance of the bill becoming law in 2026. If passed, it would be the second major crypto law signed into law by President Donald Trump, following the GENIUS Act according to Crypto.news.

The final outcome will depend on whether lawmakers can bridge the remaining gaps and reach a bipartisan agreement. While some view the bill as a step forward, others fear it may not go far enough to address the most pressing regulatory challenges in the crypto sector as Cryptopolitan reports.