White House Crypto Czar Gives Major Update on the CLARITY Act

David Sacks, the White House’s AI and crypto czar, said the Digital Asset Market Clarity Act (CLARITY Act) will enter the US Senate markup stage in January, marking a critical step toward final passage.

Sacks said Senate Banking Committee Chair Tim Scott and Senate Agriculture Committee Chair John Boozman have confirmed the timeline, setting the stage for formal review and amendments before a full Senate vote.

What Happens in January

The update signals growing momentum behind the bill after the House advanced it earlier in 2025. 

If the Senate process stays on schedule, lawmakers could finalize a reconciled version later in the year. This will position the CLARITY Act as the central market-structure law for US crypto markets.

During markup, Senate committees will review the House-passed text line by line. Lawmakers will propose amendments, debate policy trade-offs, and vote on changes before sending a revised bill to the Senate floor. 

The process will involve both the Banking Committee, which oversees securities regulation, and the Agriculture Committee, which supervises the Commodity Futures Trading Commission (CFTC).

The goal is to resolve long-standing jurisdictional disputes between the SEC and the CFTC and to strengthen guardrails for spot crypto markets. 

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Committee leaders have indicated they want a bill that can attract bipartisan support and avoid reopening enforcement-heavy approaches.

Likely Amendment Focus for the CLARITY Act

Amendments are expected to concentrate on three areas. 

First, asset classification, including tighter criteria for determining when a token qualifies as a digital commodity versus a security. 

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Also, investor and consumer protections, such as disclosures, custody standards, and conflict-of-interest rules for exchanges and brokers. 

Lastly, implementation timelines, including how quickly platforms must register and how agencies coordinate supervision during the transition.

Senators may also refine preemption language to limit overlapping state rules without weakening state enforcement authority.

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How will the CLARITY Act Change US Crypto Markets in 2026?

If enacted, the CLARITY Act would reshape the US crypto market in 2026. It would place spot digital commodity markets under CFTC oversight, end years of regulatory ambiguity, and create a federal registration regime for exchanges, brokers, and dealers. 

For the industry, this would reduce legal uncertainty, support institutional participation, and shift compliance from courtroom battles to rule-based supervision.

For regulators, the law would replace fragmented enforcement with clearer mandates. 

Most importantly, for the market, it would mark the United States’ first comprehensive framework for crypto trading. This would potentially restore competitiveness with jurisdictions that already offer regulatory clarity.