The long awaited CLARITY Act is edging closer to becoming law, with a Senate markup now expected in January, according to White House artificial intelligence and crypto policy lead David Sacks. The development signals renewed momentum for the most significant US crypto market structure legislation to date, after months of delays tied to broader political disruptions.
In a post shared on X, Sacks said Senate Banking Committee Chair Tim Scott and Senate Agriculture Committee Chair John Boozman had confirmed that the bipartisan bill would be formally taken up by the Senate early next year. He described the upcoming markup as a critical step toward delivering the regulatory framework that President Donald Trump has publicly supported.
The House of Representatives passed the CLARITY Act in July, but the legislation has since awaited Senate action. The markup phase will allow senators to debate the bill’s provisions and propose amendments before it can advance to a full Senate vote.
What the CLARITY Act aims to change
At its core, the CLARITY Act seeks to resolve one of the crypto industry’s longest running challenges in the United States: regulatory uncertainty. The bill proposes a clear legal distinction between crypto assets that qualify as securities and those that fall under commodities law. It also defines how oversight responsibilities are shared among federal regulators, including the Securities and Exchange Commission and the Commodity Futures Trading Commission.
Supporters argue that the legislation would give crypto firms predictable compliance pathways, reduce the risk of conflicting enforcement actions, and create a more innovation friendly environment without weakening investor protections. Industry participants have long said that the lack of statutory clarity has pushed some development offshore and discouraged institutional participation in the US market.
Progress on the bill slowed in the final quarter of the year, largely due to a record 43 day US government shutdown across October and November. Despite the shutdown, regulatory engagement with the crypto sector continued. US regulators held discussions with executives from companies such as Coinbase, Ripple, and Circle to keep the legislative process moving and address technical concerns around market structure and consumer safeguards.
Senator Cynthia Lummis had previously suggested in September that the CLARITY Act could reach President Trump’s desk before the end of 2025. The January markup confirms that timeline has shifted, but it also indicates that the bill has not lost political backing.
A key challenge now facing Senate leadership is securing enough votes to advance the bill. Senate Banking Chair Tim Scott will need to build a supermajority coalition to prevent the legislation from stalling at this stage. If the Senate passes the CLARITY Act with amendments, it will return to the House for final approval before heading to the president for signature.
For the crypto industry, the coming weeks could prove decisive. A successful Senate markup would mark the first time comprehensive crypto market structure rules move this far through Congress, potentially reshaping how digital asset businesses operate in the United States.
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