Senate Finally Reviews CLARITY Act After Months of Delays - Crypto Regulation at a Crossroads

After months of political gridlock, the U.S. Senate is finally taking up the CLARITY Act—a move that could reshape the entire digital asset landscape. This isn't just another committee hearing; it's a potential watershed moment for an industry tired of regulatory whiplash.

The Long-Awaited Reckoning

Lawmakers have kicked the can down the road for months, leaving projects in legal limbo and investors navigating a patchwork of state rules. The delay wasn't just bureaucratic inertia—it was a high-stakes game of chicken between innovation and oversight. Now, the Senate's calendar forces a decision.

What CLARITY Actually Means

Forget vague promises. This act draws lines in the digital sand. It aims to separate utility from security, define decentralized networks, and clarify which regulator—the SEC or CFTC—calls the shots. The goal? Replace regulatory ambiguity with a framework that doesn't treat every blockchain project like a potential Enron.

The Stakes for the Market

Institutional money has been waiting on the sidelines, wary of a regulatory crackdown. Clear rules could unlock billions in pent-up capital. Conversely, heavy-handed legislation could push innovation offshore—a classic case of regulators protecting investors right out of the market, a favorite pastime in finance.

The Clock is Ticking

The Senate review starts a finite timeline. Committee debates, amendments, and floor votes will follow. The industry is watching every word, knowing that this legislation could either fuel the next bull run or anchor it in compliance quicksand. One thing's certain: the era of 'move fast and break things' is colliding with 'read the fine print.'

TLDR

• White House crypto czar David Sacks confirmed the CLARITY Act will go to Senate markup in January 2025
• Senate Banking Committee Chair Tim Scott and Agriculture Committee Chair John Boozman will lead the markup process
• The bill passed the House in July and defines crypto securities and commodities while clarifying SEC and CFTC roles
• Delays were caused by the 43-day government shutdown in October and November
• If Senate passes with amendments, the bill returns to the House before reaching President Trump’s desk

White House artificial intelligence and crypto czar David Sacks announced Thursday that the Digital Asset Market Clarity Act will move to Senate markup in January. The confirmation came after a call with Senate Banking Committee Chair Tim Scott and Agriculture Committee Chair John Boozman.

The Clarity Act, confirmed by Trump’s crypto czar, is expected to pass in January 2026. #XRP pic.twitter.com/8OUaaeRxYi

— JackTheRippler © (@RippleXrpie) December 19, 2025

Sacks posted on X that both committee chairs confirmed the markup session for next month. He stated the country is closer than ever to passing the crypto market structure legislation.

The House of Representatives passed the CLARITY Act in July with bipartisan support. The bill has been waiting for Senate action since then.

The legislation aims to create clear definitions for crypto securities and commodities. It also establishes specific roles for the Securities and Exchange Commission and the Commodity Futures Trading Commission.

The bill’s progress has been slower than expected. Senator Cynthia Lummis predicted in September that it WOULD reach President Trump’s desk before the end of 2025.

Government Shutdown Caused Delays

The main cause of delays was the 43-day government shutdown that lasted through October and November. This was the longest shutdown in US history.

Despite the shutdown, US regulators continued meeting with crypto industry executives. Representatives from Coinbase, Ripple, Circle and other companies attended these meetings to maintain momentum.

The markup session will allow Senate committees to review and amend the bill. Committee members can propose changes before voting on whether to send it to the full Senate.

Scott will need to secure a supermajority of votes to prevent the bill from stalling. Without enough votes, the legislation could be abandoned.

The Senate has its own version of a crypto market structure bill. This version introduces a new term called “ancillary assets” to help identify which cryptocurrencies are not securities.

The Senate bill remains in the discussion draft phase. The January markup could potentially combine elements from both the House-passed CLARITY Act and the Senate’s draft.

Supporters of the CLARITY Act say it will reduce regulatory uncertainty for crypto companies. The bill establishes clearer compliance pathways for businesses operating in the crypto space.

The legislation also aims to encourage innovation in the digital asset industry. At the same time, it seeks to strengthen protections for investors.

If the Senate passes the bill with amendments, it must return to the House for final approval. Both chambers need to agree on the same version before it can be sent to President Trump.

The Agriculture Committee’s involvement stems from the CFTC’s traditional oversight of commodities markets. The Banking Committee oversees securities regulation through the SEC.

The January markup represents a critical next step for crypto regulation in the United States. Both committees will work together to shape the final version of the bill.