White House AI and Crypto Czar: CLARITY Act Markup Coming in January

"We are closer than ever to passing the landmark crypto market structure legislation"

Legislative Progress

The White House AI and Crypto Czar has announced that markup procedures for the CLARITY Act will begin in January. This news marks significant progress in U.S. cryptocurrency regulatory framework legislation.

A "markup" refers to the congressional committee process of discussing, amending, and voting on a bill section by section, indicating that the legislation is about to enter a substantive legislative phase.

CLARITY Act Overview

The CLARITY Act aims to address a core issue that has plagued the U.S. cryptocurrency industry for years: whether digital assets should be regulated by the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC).

Current regulations lack clear definitions, resulting in both regulatory vacuums and enforcement conflicts. Crypto businesses have long faced compliance dilemmas, unclear about which rules apply and unable to anticipate regulatory actions. The bill seeks to establish clear classification standards and explicitly delineate the jurisdictional boundaries between the two regulatory agencies.

Industry Significance

If passed, this would become the first comprehensive crypto market structure law in the United States, with profound implications for the industry. A clear regulatory framework would reduce compliance costs and legal risks, potentially attracting more institutional capital into the market while positioning the U.S. more favorably in global digital asset competition.

This development also echoes longstanding industry demands. Market participants have repeatedly emphasized that regulatory certainty is a critical prerequisite for driving innovation and investment.

What to Watch

After the January markup begins, the bill will go through amendments, committee votes, and floor votes among other stages. Markets will closely monitor changes to specific provisions and the level of bipartisan support.