After months in legislative limbo, the U.S. crypto industry finally has a date to watch: the Senate Banking Committee will hold a high-stakes markup of the Digital Asset Market Clarity Act (CLARITY) on January 15. The session could resolve a decade-long “turf war” between the SEC and the CFTC and, if successful, move many digital assets out of the regulatory “gray zone” and into a clearer legal framework.
The CLARITY Act—already passed by the House with bipartisan support—is being pushed in the Senate with strong backing from Senators Tim Scott and John Boozman. Supporters say the bill would give the market the rulebook it has long demanded; detractors warn the work to get there remains difficult and politically fraught.
Three sticking points threaten to stall the measure:
- How to regulate DeFi without crippling developers and innovation.
- Clear, workable lines between SEC and CFTC jurisdiction over tokens.
- Whether stablecoin issuers should be allowed to offer rewards—an idea Democrats on the Banking Committee strongly oppose.
Republicans technically have the votes to advance the bill through committee on a party-line vote, but insiders caution that this would doom chances on the Senate floor. The bill needs 60 votes to invoke cloture and avoid a filibuster, meaning bipartisan buy-in is essential. Without it, the CLARITY Act would likely die once it reaches the broader chamber.
Market sentiment has shifted sharply since last year. Prediction platform Kalshi put the odds of the CLARITY Act becoming law before May at 69% at press time, with 42% of traders betting on a breakthrough as early as April. Polymarket’s odds also rebounded—rising from about 15% in November to roughly 35% after year-end updates—signaling growing confidence in a legislative thaw.
Yet the calendar and politics are unforgiving. The 2026 midterm campaign season is approaching, and history shows bipartisan cooperation often fractures once campaigning ramps up. If the Banking Committee can’t reach a compromise by early spring, passage could be delayed into 2027, leaving the industry in regulatory uncertainty for another year.
For now, all eyes are on the January 15 markup. How lawmakers square DeFi safeguards, jurisdictional lines, and stablecoin rules will determine whether the CLARITY Act becomes the long-sought framework for digital assets—or another missed opportunity.
Disclaimer: AMBCrypto's content is informational and not investment advice. Cryptocurrency trading carries high risk; do your own research before making decisions. © 2026 AMBCrypto
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