The U.S. Senate Banking Committee is scheduled to vote on the CLARITY Act on January 15th at 10:00 AM ET (18:00 UTC+3). This major crypto market structure bill, years in the making, aims to end long-standing regulatory ambiguity in the United States by establishing a clear federal statutory framework, moving away from the current reliance on enforcement actions.
The core of the CLARITY Act involves creating clear definitions for digital commodities and digital assets and assigning regulatory oversight. The bill proposes granting the Commodity Futures Trading Commission (CFTC) exclusive jurisdiction over digital commodity spot markets, while the Securities and Exchange Commission (SEC) would continue to oversee securities-like offerings. This delineation is designed to reduce the regulatory turf war between the two agencies, which has been cited as a barrier to institutional entry into the crypto market.
The legislation also targets market manipulation practices, including wash trading, spoofing, and inflated trading volumes. To combat these, it may require crypto companies and exchanges to provide Proof-of-Reserves and implement real-time surveillance systems. Some analysts project that if enacted, the CLARITY Act could reduce manipulation rates in the cryptocurrency market by 70-80%.
Proponents argue that the bill's passage could significantly boost investor confidence, improve market transparency, and pave the way for a faster influx of large institutional funds into crypto by 2026. Analyst Crypto Rover noted that such protections could help prevent market crashes similar to the one experienced in October 2025.
The path forward involves several steps. If the bill passes the committee vote, it will proceed to the full Senate for a vote. Following Senate approval, it would move to the House of Representatives. The final stage would require the signature of U.S. President Donald Trump to become law.
However, the bill is not without controversy and debate. Key sticking points in negotiations include a Democratic demand for an explicit provision prohibiting high-ranking public officials from personally profiting from cryptocurrency activities, a point of criticism aimed at Trump and his family's digital asset ventures. There are also calls for decentralized finance (DeFi) projects to be subject to a regulatory oversight regime similar to that of federally regulated financial institutions.
Another contentious issue revolves around stablecoins and yield programs. While the previously passed GENIUS Act prohibited stablecoin issuers from offering interest, interpretations suggest the CLARITY Act could allow yield or reward programs through affiliates. The banking sector warns this threatens the traditional deposit system, while White House crypto adviser Patrick Witt argues that objections to such provisions preserve a problematic status quo. Coinbase Chief Policy Officer Faryar Shirzad contends the issue was already resolved with the GENIUS Act and that reopening the discussion creates unnecessary uncertainty.
Market reaction ahead of the vote has been cautiously optimistic, with Bitcoin trading near $91,000 and minor altcoins seeing slight gains, reflecting positioning in anticipation of the regulatory milestone.
