Senators have scheduled a January markup for the Digital Asset Market Clarity Act, the crypto market structure bill. The timing was confirmed by White House crypto and AI adviser David Sacks after consultations with Senate Banking Committee Chair Tim Scott and Agriculture Committee Chair John Boozman.
The draft legislation would reallocate oversight by treating most digital assets as commodities, expanding the CFTC’s jurisdiction at the expense of the SEC’s current role. The bill, known by sponsors as the CLARITY Act, seeks to establish clear criteria for asset classification, setting rules to determine when a token is a security or a commodity. Lawmakers intend to address investor protections, realistic timelines for industry compliance, and specific regulatory treatment for stablecoins.
The confirmation of Michael Selig as CFTC chair was cited as a consequential development tying regulatory leadership to the bill’s design. Lawmakers expect the markup to probe operational issues such as custody standards, listing and trading rules, and reporting obligations that would affect institutional adoption, liquidity, and product design.
Delegates preparing for the markup will focus on decentralized finance (DeFi) and stablecoins. DeFi refers to blockchain-based financial applications that operate without centralized intermediaries. Debate will center on whether protocols should face the same identification and compliance obligations as centralized services, and how to manage anti-money‑laundering and know‑your‑customer (KYC) requirements for permissionless platforms.
Implementation timeline and industry impact
Labor groups and some senators have signaled strong resistance. The American Federation of Teachers warned of “profound risks” to retirement savings, arguing the proposal could expose pension assets to crypto volatility. Senator Elizabeth Warren has raised separate concerns about possible improper political influence and the lack of user identification controls on some DeFi platforms that could foster illicit activity. These objections frame a core tension: industry calls for regulatory clarity versus demands for robust consumer protections.
A markup will also examine the schedule for implementing changes, which matters to banks, exchanges, custodians and compliance teams planning product road maps and capital allocation. Industry participants have pushed for definitive timelines to reduce uncertainty that currently constrains institutional inflows and tokenization projects.
The January markup will be the next critical test of whether a bipartisan framework can reconcile market clarity with consumer safeguards; stakeholders should expect intensive drafting and amendment activity rather than immediate resolution.
