CLARITY Act Senate Markup Set for Next Week: What It Means for U.S. Crypto Regulation

This article was first published on Deythere.

CLARITY Act Senate momentum is building as Senator Tim Scott confirmed that the Digital Asset Market Clarity Act will move to a formal markup next week, pushing the long-debated crypto market structure bill into a decisive legislative phase. The development signals a shift from extended negotiations to recorded action, placing lawmakers’ positions on the public record after months of behind-the-scenes drafting.

The bill’s advance does not guarantee passage. Instead, it brings unresolved disagreements into open debate, where amendments, objections, and compromises will be tested in real time. For an industry seeking predictable federal oversight, the coming days carry significant weight.

What is the Digital Asset Market Clarity Act trying to achieve?

The Digital Asset Market Clarity Act is designed to establish a comprehensive regulatory framework for digital asset markets in the United States. Its core objective is to define oversight responsibilities, reduce jurisdictional confusion, and provide clearer rules for exchanges, decentralized platforms, developers, and intermediaries.

The House of Representatives passed the legislation in July 2025. If the Senate approves it without changes, the bill would move directly to President Donald Trump for final approval, avoiding a return to the House. This procedural reality has intensified focus on the CLARITY Act Senate markup, where even small revisions could reset the process.

Why is the Senate markup next week so important?

Senator Tim Scott said a vote on market structure is scheduled for next Thursday, stressing the importance of formally advancing the bill. He noted that committee members have had access to multiple draft versions over the past six-plus months, an effort aimed at informed deliberation rather than rushed decision-making.

The markup represents the first time the bill’s compromises will be scrutinized publicly. For supporters, the CLARITY Act Senate review is a sign of legislative progress. For critics, it is a final opportunity to push for changes before the bill advances further.

What issues remain unresolved within the legislation?

Industry voices remain divided as the bill approaches markup. Crypto attorney and MetaLeX founder Gabriel Shapiro said the United States is “probably going to get a crypto market structure bill,” but warned that concerns around illicit finance still need to be addressed. He suggested that a workable deal could still emerge.

More cautious assessments highlight several open questions. Galaxy Digital’s head of research, Alex Thorn, said that after reviewing recent bipartisan discussions, it remains unclear whether agreement is close. He pointed to unresolved matters such as stablecoin yield treatment, ethics and conflict-of-interest standards, bipartisan quorum requirements for regulators, self-custody language, and protections for software developers under existing money-transmission laws. These issues continue to shape expectations around the CLARITY Act Senate outcome.

How are partisan demands influencing negotiations?

Democratic lawmakers are pressing for provisions that would require DeFi front-end interfaces to comply with sanctions, enabling them to block illegal transactions. They are also seeking expanded authority for the U.S. Treasury’s sanctions office to act against entities involved in illicit activity.

Some industry participants view these demands as restrictive, while others see them as reasonable safeguards. Venture capital investor Nic Carter said such requests are “actually pretty reasonable,” indicating that compromise language could still be achievable. Whether that balance is struck will be central to how the CLARITY Act Senate debate unfolds.

Is regulatory uncertainty affecting crypto markets?

Market participants increasingly link legislative delays to recent volatility. CoinShares attributed $952 million in outflows from crypto investment products during the week ending Dec. 19 to prolonged regulatory uncertainty, citing delays around the bill as a contributing factor.

Institutional market strategists have echoed that view, noting that the legislation is foundational for the growth of crypto and other emerging asset classes. The drawn-out CLARITY Act Senate process has therefore become a tangible risk consideration for investors assessing market stability.

What political pressures are shaping the timeline?

Senators from both parties resumed talks this week, marking the first formal discussions of 2026. Senator John Kennedy said a markup is being planned for Jan. 15, though an updated draft has not yet been released publicly.

The timeline is complicated by a crowded legislative calendar. Lawmakers face a Jan. 30 deadline to finalize a federal spending plan, alongside broader political pressures ahead of midterm elections. These constraints add urgency to the CLARITY Act Senate effort but also raise the risk that unresolved disagreements could slow progress.

Conclusion 

CLARITY Act Senate deliberations now move from preparation to accountability as lawmakers prepare to place their positions on record after months of drafting and internal negotiation. The legislation has cleared the House and reached the Senate floor with unresolved issues still attached, reflecting both the complexity of digital asset regulation and the difficulty of aligning political priorities. 

Whether amendments emerge or the bill advances unchanged, the markup will mark the first formal test of consensus around U.S. crypto market structure. For the industry and regulators alike, the vote will signal how quickly regulatory certainty can replace prolonged ambiguity.

Glossary 

Markup: A Senate session to review and update a bill before voting.

Senator Tim Scott: The senator overseeing the CLARITY Act Senate review.

Self-Custody: Keeping your crypto in your own control, not on an exchange.

CLARITY Act Senate: The Senate process to debate and vote on the crypto regulation bill.

DeFi: Crypto financial services that work without banks.

Frequently Asked Questions About CLARITY Act Senate 

Who is leading the CLARITY Act Senate markup?

Senator Tim Scott is guiding the CLARITY Act Senate markup and helping lawmakers review the bill.

Has the bill passed any part of Congress?

Yes, the House of Representatives approved the bill in July 2025, and it is now moving to the Senate.

When will the Senate vote or markup happen?

The Senate markup is scheduled for next week, with lawmakers reviewing and possibly voting on the bill.

What issues are still unresolved in the bill?

Some unresolved issues include stablecoin rules, ethics standards, self-custody language, and protections for software developers.

Is the CLARITY Act affecting crypto markets?

Yes, delays and uncertainty around bill have contributed to market volatility. And investment outflows.

Sources

X

Cointelegraph

Coindesk