The Digital Asset Market Clarity Act, known as the CLARITY Act, is scheduled to enter the United States Senate markup stage in January, signalling a major advance towards becoming law.
David Sacks, the White House’s AI and crypto czar, confirmed the timeline, describing the move as a critical step in establishing a formal regulatory framework for digital assets.
“The CLARITY Act will move into Senate markup in January,” David Sacks said.
Sacks said the schedule had been confirmed by Senate Banking Committee Chair Tim Scott and Senate Agriculture Committee Chair John Boozman.
The development follows the House of Representatives advancing the legislation earlier in 2025, adding momentum to the long-debated bill.
Senate markup will involve detailed, line-by-line examination of the House-passed text by relevant committees.
Lawmakers are expected to propose amendments, debate policy trade-offs, and vote on revisions before the bill proceeds to the full Senate.
Oversight of the process will be shared between the Senate Banking Committee and the Senate Agriculture Committee.
The Banking Committee is responsible for securities regulation, while the Agriculture Committee supervises the Commodity Futures Trading Commission.
A central objective of the CLARITY Act is resolving long-standing jurisdictional disputes between the Securities and Exchange Commission and the CFTC.
The bill also aims to strengthen regulatory guardrails for spot cryptocurrency markets operating in the United States.
Committee leaders have indicated they are seeking bipartisan support and want to avoid reviving enforcement-led regulatory approaches.
Expected amendments include clearer rules on asset classification, particularly defining when a token qualifies as a digital commodity or a security.
Lawmakers are also likely to focus on investor and consumer protections, including disclosure requirements and custody standards.
Conflict-of-interest rules for crypto exchanges and brokers are another area expected to receive attention during markup.
Senators may adjust implementation timelines, including how quickly platforms must register with federal authorities.
Additional debate is expected around coordination between agencies during the transition to the new regulatory regime.
If enacted, the CLARITY Act would place spot digital commodity markets under CFTC oversight from 2026.
The legislation would create a federal registration framework for crypto exchanges, brokers, and dealers.
Industry participants believe the law would reduce legal uncertainty and encourage greater institutional involvement.
Regulators would gain clearer mandates, replacing fragmented enforcement with a more structured supervisory approach.
The CLARITY Act would represent the first comprehensive federal framework for cryptocurrency trading in the United States.